As i said before, 4Qr results will see significant improvement in BAT revenue bcos just after Finance Minister announced sweeping changes in attacking illegal Cigs, my Port documentation Boys had told me they see many New faces in Custom Dept. Although Custom Dept didnT announced openly as Police Dept that many of their Officers are facing relocation due suspicion of assisting smugglers, they are shifting "Old Hand" to other places
Our country is the champion of curruption in the world,we had mil liong of illegal immigrant, near to 70% of illegal cigarette in the market,what do you think of the custom n immigration department performed,of course a small kid can till you why.and almost of it were malay,bringing down the country for their greedy
Look at Top glove’s bet profit of about RM2.4 billion released today afternoon looks like crazy earning that will create better investment sentiment in Bursa.
Yes, vape market will be a game changer for BAT. Big funds know the potential that's why they have been accumulating. You think they simply buy just to goreng a cigarette stock for nothing?
Weak short term holders who bought during the recent rally mostly took their profit already. Too bad they don't see the big picture in the coming future. Loyal BAT holders stay and will reap the rewards later.
KUALA LUMPUR (Dec 9): Affin Hwang Capital has upgraded British American Tobacco (Malaysia) Bhd (BAT) to a buy from a sell, and revised up its target price by 76% to RM16.20 from RM9.20, as it believes BAT's earnings could have likely bottomed out this year. The new target price of RM16.20 implies a potential 16% upside to BAT's current stock price of RM13.96.
The research house's analyst Chow Wei Nien said in a note today that BAT's value-for-money (VFM) offerings have by and large seen a good traction, and are poised to provide a steady earnings base for the group moving forward.
According to Chow, the previous two quarters saw BAT's domestic volume increase 15%/14% quarter-on-quarter (q-o-q) for the second quarter of financial year 2020 (2QFY20)/3QFY20, outpacing the industry's growth of +10%/+7% q-o-q, and this led to a market share gain of 2.1 percentage points to 52.5% over the period.
"Much of the volume improvement could be attributed to VFM offerings, Kyo and Rothmans, which garnered strong traction on the back of increased down-trading towards more economical variants.
"Notwithstanding the lower-margin nature of VFM offerings, we expect the growing volume sales to offset the lower profitability, and support sequential earnings improvement," he said.
He also noted pronounced measures laid out in Budget 2021 are likely to remain supportive of BAT near-term sentiment.
According to Chow, limiting the transhipment of cigarettes to dedicated ports and the initial imposition of import taxes are seen as keys to eliminate a major loophole in the tobacco black market.
"It is believed that 30% to 40% of illegal volumes are brought in via transhipments. Hence, if successfully executed, a blue-sky scenario would imply an elimination of almost about 4.5 billion illegal cigarette sticks per year."
"For every 1% reduction in illicit volumes, we estimate an increase in the 2021 net profit of around 3%," he said.
He also revised higher BAT earnings forecasts for 2021 to 2022 by 9% to 18% to RM271.4 million to RM282.4 million, to input higher VFM volume sales.
"Since the announcement of Budget 2021, BAT's share price has appreciated by about 37%, largely as investors have turned more upbeat on prospects of better control of the illegal tobacco market," he said, adding that he foresees further upside for BAT from the current juncture.
BAT's stock is down four sen or 0.3% today to RM13.96.
if by year end can rm16, i very happy already....slow slow steady rise better than sudden spike...don't want to much speculative gyrations like yesterday...
I tell you straight, most IB was collecting a month ago that is reason None give any Tp when we were shouting 50, 50.----Such similarities exist when local Sifu was shouting TopGloves Tp 30, no Bankers said anything
haha..2 different scenario bro.. Topglove already appreciate at least x6 of the price which had predictable. and BAT drop from rm70 to rm9 de-appreciate at least x10. now up not even x1 of the price.
Today and yesterday movement basically Building up stronger foundation after spining off some detail players ,its warming up on the high way now,last calling ,its definitely still not too late.25 is next stop.
Dec 9 (Reuters) - British American Tobacco raised its forecast for 2020 revenue on Wednesday as the hit to cigarette demand from the COVID-19 pandemic was smaller than feared.
The world’s second-biggest cigarette maker, with brands like Dunhill and Lucky Strike, said it expects adjusted revenue growth on a constant currency basis to be at the upper end of its previous forecast of 1% to 3% in 2020. (Reporting by Martinne Geller in London and Yadarisa Shabong in Bengaluru; Editing by Ramakrishnan M.)
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
gemfinder
6,880 posts
Posted by gemfinder > 2020-12-09 11:51 | Report Abuse
topup 13.66