BAT Malaysia's share price down despite higher 1Q net profit and declaring 21 sen dividend
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Summary:
KUALA LUMPUR (June 1): British American Tobacco (Malaysia) Bhd (BAT Malaysia)’s share price dropped today despite a 24.32% year-on-year (y-o-y) increase in net profit to RM63.11 million in the first quarter ended March 31, 2021 (1QFY21), and declaring a dividend of 21 sen.
Analysts hold mixed opinions on BAT Malaysia’s outlook due to the volatile nature of the tobacco market and an expected decrease in market volume.
In a note today, CGS-CIMB downgraded its “add” call to “hold” with a target price of RM15.40, attributing these changes to the quarter-on-quarter (q-o-q) drop in net profit and an expected decrease in market volume.
“BAT’s 1QFY21 core net profit regressed 18.8% q-o-q, after coming off the year-end holiday season. The quarter’s sales, however, dropped by a milder rate of 14 ...
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