Friday, October 21, 2011

ECM Libra Research maintains Hold on BAT

KUALA LUMPUR: ECM Libra Investment Research said BRITISH AMERICAN TOBACCO (M) [] Bhd's 3QFY11 results came in within expectations, with core net profit increased by 3.3% y-o-y to RM176.3 million mostly due to trade loading in anticipation of an excise duty hike which did not materialise.

BAT declared a third interim net dividend of 60.0 sen per share.

In a note Friday, Oct 21, ECM Libra Research said BAT was fully valued at current valuation.

'Nonetheless, CY12 dividend yield of 5.2% remains attractive. Maintain Hold call.

'RM43.80 target price is unchanged based on a DCF valuation (WACC of 7.8%, longterm growth rate of 1.5%),' it said.



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