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Results Update

In QE31/3/2019, Carlsbg's net profit increased 30% q-o-q or 8% y-o-y to RM88 million while revenue rose 26% q-o-q or 20% y-o-y to RM660 million.

The Group's revenue increased q-o-q mainly due to higher sales in Malaysia following the successful execution of Chinese Near Year promotions. The Group’s profit from operations increased q-o-q mainly due to higher revenues in Malaysia partly offset by the increase in commercial investments.


Table: Carlsbg's last 8 quarterly results

From Chart 1 below, we can see that Carlsbg's quarterly revenue and profits are all at all-time high.



Graph: Carlsbg's last 54 quarterly results

Valuation

Carlsbg (closed at RM24.24 yesterday) is now trading at a PE of 26 times (based on an annualized EPS of 92.86 sen). At this PER, Carlsbg is deemed fairly valued. In addition, it has an attractive dividend yield of 4.2%.

Technical Outlook

From the monthly chart, it looks like Carlsbg may continue with its prior uptrend. As the MACD has crossed above its MACD signal line, it is likely that Carlsbg may experience near term weakness.


Chart 1: Carlsbg's weekly chart as at May 15, 2019(Source: Malaysiastock.biz))


Chart 2: Carlsbg's monthly chart as at May 15, 2019(Source: Malaysiastock.biz))

Conclusion

Based on satisfactory financial results, fair valuation & constructive technical outlook, I would rate Carlsbg a HOLD for now.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
 
http://nexttrade.blogspot.com/2019/05/carlsbg-earnings-boosted-by-cny.html
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