KUALA LUMPUR: Nestle (Malaysia) Bhd shares rose on Friday, Aug 19 after the company declared an interim dividend of 55 sen per share, tax exempt under single-tier tax system.
At 9.30am, Nestle added 10 sen to RM48.
The company said on Aug 18 that its net profit for the second quarter ended June 30, 2011 rose 6.4% to RM106.55 million from RM100.15 million a year earlier, driven by both domestic and export sales.
Revenue for the quarter rose to RM1.16 billion from RM1.05 billion in 2010. Earnings per share was 45.44 sen while net assets per share was RM2.58.
MIDF Research maintained its Neutral rating on Nestle, and said that based on the estimated dividend per share of RM2.05 in FY12 with WACC and a slight lower growth rate assumption of 7.6% and 3.2% (from 3.3% given uncertainty in global economy) respectively, its target price was maintained at RM46.90 per share.
'However, we expect Nestle to outperform during troubled times and we view it as attractive given its high dividend yield of 4.7%.
'We like Nestle for its defensive business and strong brand name,' it said in a note Aug 19.
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At 9.30am, Nestle added 10 sen to RM48.
The company said on Aug 18 that its net profit for the second quarter ended June 30, 2011 rose 6.4% to RM106.55 million from RM100.15 million a year earlier, driven by both domestic and export sales.
Revenue for the quarter rose to RM1.16 billion from RM1.05 billion in 2010. Earnings per share was 45.44 sen while net assets per share was RM2.58.
MIDF Research maintained its Neutral rating on Nestle, and said that based on the estimated dividend per share of RM2.05 in FY12 with WACC and a slight lower growth rate assumption of 7.6% and 3.2% (from 3.3% given uncertainty in global economy) respectively, its target price was maintained at RM46.90 per share.
'However, we expect Nestle to outperform during troubled times and we view it as attractive given its high dividend yield of 4.7%.
'We like Nestle for its defensive business and strong brand name,' it said in a note Aug 19.
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