Nestle (Malaysia): Maintain Sell - 1H12 Within Expectations

• 1H in line. 2Q12 net profit of MYR121m (+22% YoY ; -24% QoQ) was in line, at 55% of our and 57% of consensus full-year forecasts. 1H12 net profit expanded 13.5% YoY to MYR279m.
• Strong YoY growth in net profit was, to a certain extent, due to the restatement of its financials following the adoption of MFRS.
• No changes to our earnings forecasts. Maintain SELL on unchanged DCF-based TP of MYR54.20.

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Source: Maybank Research - 3 Sept 2012