Thursday, September 13, 2012

JT International: Maintain Hold - Bids Farewell To Mild Seven

  • Remains mild. JTI will be rebranding one of its flagship brands from Mild Seven to Mevius in 2013, indicating downside risk to JTI's 2013 earnings on potential market share shave but this move is positive in the long run. We however think this negative has been priced into JTI's share price, and any downside would be supported by another generous special dividend payout, expected in 2014. Hence, we maintain our HOLD on JTI at an unchanged DCF-based TP of MYR6.70, which translates into 15.4x FY13 PER.
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Source: Maybank Research - 13 Sept 2012

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