We remain NEUTRAL on the consumer sector in view of the moderate growth in private consumption moving forward but we envisage a better 2H14 for consumer stocks on better consumer sentiment as well as the presence of festivities, school holidays and more A&P activities. We like (i) NESTLE (OP, TP: RM76.10) for its ongoing expansion plan, aggressive marketing strategy and strong brand portfolio with entrenched market share, (ii) PADINI (OP, TP: RM2.13) for its undemanding valuation, aggressive store expansion and the focus on value for money segment, and (iii) QL (OP, TP: RM3.71) for its sustainable earnings growth, supported by growth in each of its operating segments and the non-discretionary demand nature of its products.
2Q14 disappointing. 5 out of 14 stocks under our coverage universe (AEON, PADINI, DLADY, OLDTOWN, and ZHULIAN) reported results that were below our expectations while the remaining 9 came in within for 2Q14. Higher operating costs and soft consumer sentiments were the main culprit for the lacklustre results while we believe that the absence of festive season, as highlighted in our previous sector report in 2Q14, also contributed to the poor showing.
Source: Kenanga
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2024-08-30
NESTLE2024-08-30
NESTLE2024-08-30
PADINI2024-08-30
PADINI2024-08-30
PADINI2024-08-30
PADINI2024-08-30
PADINI2024-08-30
PADINI2024-08-30
PADINI2024-08-30
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QL2024-08-29
NESTLE2024-08-29
NESTLE2024-08-29
PADINI2024-08-29
PADINI2024-08-29
PADINI2024-08-29
PADINI2024-08-29
PADINI2024-08-29
PADINI2024-08-29
PADINI2024-08-29
PADINI2024-08-29
QL2024-08-29
QL2024-08-29
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QL2024-08-29
QL2024-08-29
QL2024-08-28
NESTLE2024-08-28
PADINI2024-08-28
PADINI2024-08-28
PADINI2024-08-28
PADINI2024-08-28
PADINI2024-08-28
PADINI2024-08-28
PADINI2024-08-27
PADINI2024-08-27
PADINI2024-08-26
NESTLE2024-08-26
PADINI2024-08-26
PADINI2024-08-26
QL2024-08-23
NESTLE2024-08-23
PADINI2024-08-22
NESTLE2024-08-21
NESTLE