KUALA LUMPUR (Dec 4): Hong Leong Investment Bank (HLIB) Research said Carlsberg Brewery Malaysia Bhd is technically grossly oversold, with key support pegged at the RM18.11 to RM18.75 region.

In a technical tracker note on Monday, the research house said that notably, over the past three years, Carlsberg had demonstrated a 100% rebound rate in comparable technical situations, yielding an average return of 9.9%.

“Capitalising on this historical trend, we recommend seizing the opportunity to buy the dip in Carlsberg, with the anticipation of a potential rebound towards the RM19.80-RM20.50-RM20.98 levels.

“[We recommend to] cut loss at RM17.74,” it said.

Meanwhile, HLIB said Carlsberg’s earnings of RM252.2 million (-2.6% year-on-year) for the cumulative nine months ended Sept 30, 2023 came in within expectations at 73% of the research house's full-year forecast.

“Looking into the fourth quarter, we expect Carlsberg to post stronger quarter-on-quarter earnings, in anticipation of increased beer sales during the year-end festive season, and achieve our full-year earnings projection (+8.7% year-on-year),” it said.

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