Guinness
4.8.2010
At the price of 8.10, this counter is trading at a ttm-PE of 16.95 with a DY of 5.06%.
Historical 5 Yr Data
EPSGR 7.6%
DPSGR 6.2%
PE range 12.3 to 15.6
DY range 6.9% to 5.4%
Its present ttm-PE is at the high end of its historical PE range.
Its DY is at the lower end of its historical DY range.
Recent Stock Performance:
| 1 Week | 4.4% | | 13 Weeks | 5.4% | |
 | | | | | |
| 4 Weeks | 18.0% | | 52 Weeks | 31.1% | |
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Thursday August 5, 2010
Guinness Anchor Q4 profit jumps 30%
PETALING JAYA: Guinness Anchor Bhd’s (GAB) net profit jumped 30.2% to RM35.7mil for the fourth quarter ended June 30, from RM27.4mil a year ago, boosted by higher sales during the 2010 FIFA World Cup.
Its revenue for the quarter was 11.7% higher at RM308.7mil from RM276.3mil a year ago.
It reported earnings per share of 11.81 sen versus 9.07 sen a year ago.
The brewery also proposed a final dividend of 35 sen per 50 sen stock unit for the quarter.
For the full year, GAB’s net profit was higher at RM152.7mil, or 50.54 sen per share, on revenue of RM1.36bil.
Managing director Charles Ireland said the better performance marked the brewery’s ninth consecutive year of growth.
“Our pre-tax profit hit a record of RM205mil.
“This was the first time we crossed the RM200mil mark,” he said in a briefing to announce its latest quarterly results.
Ireland said the group had also managed to increase its market share in the malt liquor market to close to 60% from a low 40% nine years ago.
To a question, he said market share was less important to the group now.
He said the group’s various promotional campaigns such as Year of Tiger, Arthur’s Day, St Patrick’s Day and the recent World Cup viewing parties had paid off.
“We have been delighted with the performance of Tiger Beer especially in the last six months,” he said.
He added that GAB would be introducing more brands locally over the next six months, but did not elaborate.
Going forward, Ireland expects its current financial year ending June 30, 2011 (FY11) to be “another good year” for GAB.
“The year has started very well for us,” he said.
Ireland said one of the challenges for the current year was to sustain its performance to yet another record year.
The GAB chief said the group had allocated RM50mil for capital expenditure for FY11 in order to produce the highest quality beer.
He added that GAB would invest some RM3mil in a bottle inspection system to make sure its bottles were not chipped, among other concerns.
“We are also investing in crates, drafts and bottles to meet the growing demand,” he said.
Ireland is also hoping that the Government would not increase excise duties in the upcoming Budget 2011.
“We are hopeful that the Government will not increase the tax as Malaysia has the second highest excise tax in the world after Norway on alcoholic products,” he said.
Ireland said a higher tax would not necessarily increase revenue collection for the government as it could instead prompt smuggling activities.
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AmResearch downgrades Guinness Anchor to Hold
Written by AmResearch
Thursday, 05 August 2010 08:55
KUALA LUMPUR: AmResearch is downgrading GUINNESS ANCHOR BHD [] (GAB) to HOLD.
It said on Thursday, Aug 5 that despite the group’s still positive earnings prospects, its higher fair value of RM8.62/share (at parity to DCF-estimates)
offered limited upside potential (<15%) and valuation is no longer attractive.
GAB’s earnings for the 12 months ended 30 June was up a decent 8% YoY to RM153mil, meeting AmResearch’s full-year forecast as well as consensus estimates.
Year-to-date, GAB maintained its leadership position with 57% market share, and circa 70% of industry profit pool.
“In view of GAB’s proven track record in maintaining its leadership position with 57% market share in the duopoly industry, we have removed the 10% discount to our DCF-based valuation model.
“Consequently, we arrive at our higher fair value of RM8.62/share (previously RM7.50/share) based at parity to our DCF-estimates,” it said.
http://www.theedgemalaysia.com/business-news/171219-amresearch-downgrades-guinness-anchor-to-hold.html
