Malaysia: Enforcement Activities, Curb On Contraband Cigarettes To Benefit BAT

Source from:  Malaysian National News Agency (BERNAMA) (my)  10/26/2012

The continuous enforcement activities against sub value-for-money (VFM) selling below the government-mandated minimum price and the curbing of illegal cigarettes will continue to benefit British American Tobacco (M) Bhd (BAT) especially in gaining market share in the premium segment. In a note Wednesday, Kenanga Research said BAT has reported a good nine-month financial results with revenue up marginally year-on-year (y-o-y) by 4.2 per cent due to the increase in contract manufacturing volume. "Net profit also increased 11.5 per cent y-o-y, mainly attributable to a lower operating cost, which fell 17.7 per cent," it said. The research firm, however, maintained its 'market perform' call on BAT on expectation the government may increase excise duty after the general elections. "This may have a negative impact on BAT or other players," it said. Enditem