Friday, May 17, 2019

Carlsbg: Earnings boosted by CNY promotions

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.

2 comments:

Unknown said...

Great information, I am amazed to know that 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. Carlsbg's perform very well since 2019 is started in Bursa Malaysia.

Carlsbg's group have grown its CAGR(Compound annual growth rate) of 7.02% in group revenues over the last year.
For 3QFY2018, company’s net profit jumped 52% YOY due to higher sales in Malaysia and excellent performance at its Singapore operations.

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Christine Mark said...

Carlsberg Brewery Malaysia Bhd reported an 8.4% net profit rise in its first quarter, thanks to higher sales recorded in both its Malaysia and Singapore operations during the Chinese New Year (CNY) festive period, which boosted earnings.

Its net profit for the quarter ended March 31, 2019 (1QFY19) climbed to RM87.6 million from RM80.82 million a year ago, as revenue grew 20.3% to RM659.92 million from RM548.47 million, it's stock exchange filing showed. The stronger 1Q lifted earnings per share for the quarter to 28.65 sen from 26.43 sen previously. Revenue at its Malaysian business grew 23.7% to RM501.9 million in 1QFY19 while profit from operations grew 10.2% to RM90.9 million.
Its Singapore business, meanwhile, recorded a 10.7% rise in revenue to RM158.1 million with a 16.3% rise in profit from operations to RM20.7 million.