JT International: Maintain Hold - Bigger Pie, Smaller Cut

JTINTER - Bigger Pie, Smaller Cut

• Within expectations. JTI's 2Q12 net profit of MYR29m (-4% YoY, -22% QoQ) brings 1H12 net profit to MYR67m (+3% YoY), accounting for 58% and 52% of our and consensus full-year forecasts. Results were largely in line with our estimates as JTI's marketing expenses are end-loaded in 4Q.
• Despite falling market share, JTI offers a decent long-term dividend yield with its consistent lucrative special dividend payouts. Maintain HOLD at an unchanged DCF-based TP of MYR6.70.

Click here for full report

Source: Maybank Research - 10 August 2012