OLDTOWN (5201) : Maybank IB Research sees firmer 2H15 for Oldtown
KUALA LUMPUR (Dec 5): Maybank IB Research has maintained its "Buy" rating on Oldtown Bhd at RM1.65 with an unchanged target price of RM2, saying the company’s food and beverage (F&B) sales should be seasonally stronger in 2HFY15.
It noted that hiccups in fast moving consumer goods (FMCG) exports had also been resolved.
In a note Friday, the research house said market share remained strong, and distributorship revamp should be positive on FMCG sales growth.
“Buy maintained, with an unchanged target price of RM2,” it said.
Maybank IB Research said into 2HFY15, it expects F&B sales to be seasonally stronger, especially in the absence of store renovations, but margins are likely to come in lower half-on-half (H-o-H) due to higher promotional expenses particularly for its White Curry Series.
“On the FMCG side, export sales should also pick up HoH after several hiccups in 1HFY15, while A&P expenditure is expected to come in lower HoH.
“Cost savings should feature over the longer term once its new automated packaging line comes onstream in July 2015, which should contribute to savings on labour and packaging,” it said.
At 11.19am, Oldtown rose 2.7% or four sen to RM1.52 with 315,100 shares done.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 5): Maybank IB Research has maintained its "Buy" rating on Oldtown Bhd at RM1.65 with an unchanged target price of RM2, saying the company’s food and beverage (F&B) sales should be seasonally stronger in 2HFY15.
It noted that hiccups in fast moving consumer goods (FMCG) exports had also been resolved.
In a note Friday, the research house said market share remained strong, and distributorship revamp should be positive on FMCG sales growth.
“Buy maintained, with an unchanged target price of RM2,” it said.
Maybank IB Research said into 2HFY15, it expects F&B sales to be seasonally stronger, especially in the absence of store renovations, but margins are likely to come in lower half-on-half (H-o-H) due to higher promotional expenses particularly for its White Curry Series.
“On the FMCG side, export sales should also pick up HoH after several hiccups in 1HFY15, while A&P expenditure is expected to come in lower HoH.
“Cost savings should feature over the longer term once its new automated packaging line comes onstream in July 2015, which should contribute to savings on labour and packaging,” it said.
At 11.19am, Oldtown rose 2.7% or four sen to RM1.52 with 315,100 shares done.
http://www.theedgemarkets.com
