Oktoberfest - HEIM & CARLSBRG
(I have no idea how the above advertisement could be approved in the past. I'm NOT promoting alcohol, but the above ad is too FUNNY to not share. Just read how "perfect" the stout was described.)
Alright, let's get back to business.
For the 2nd consecutive year, Oktoberfest has been cancelled in Germany due to Covid-19. In Malaysia, pubs & bars are still not allowed to open. International borders are still closed to foreign tourists. Heineken Malaysia Berhad (HEIM) & Carlsberg Malaysia Berhad (CARLSBRG) are still lagging behind in business recovery. Mr. Market is not very confident on beer companies' future prospects. Mr. Market might also worry about the political influence of PAS that may jeopardise these liquor companies' business, as alcohol is haram & the potential risk of excise duties raised against alcoholic drinks in Budget 2022.
Have these risks hindered the future of HEIM & CARLSBRG? Not substantially in the longer term, IMO.
Traditionally labelled as stable dividend stocks, HEIM & CARLSBRG have historically produced wonderful positive cashflows. Their ROE is among the highest on Bursa Malaysia. Liquor is addictive, & even a staple for some. (eg. the working class & football fans.)
The goodwill in the well-known trademarks of HEIM & CARLSBRG maintains a strong business moat. Further, HEIM & CARLSBRG are veterans on Bursa Malaysia, with HEIM listed since 1965 (as GAB) & CARLSBRG listed since 1971.
CONCLUSION:
With more states entering Phase 3, the economy is opening up and recovery is in progress. HEIM & CARLSBRG is expected to do the same. Future dividends should improve, in tandem with business profits. Then, shareholders can have their long awaited Oktoberfest.
P.S. Sin stocks are not for everyone.
Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author may have interest in some of the stocks listed above from time to time.
https://klse.i3investor.com/blogs/CCthoughts/2021-10-02-story-h1591849124-Oktoberfest_HEIM_CARLSBRG.jsp
