(2836, CARLSBG) Carlsberg Brewery cut to 'hold'

Hong Leong Investment Bank Research cut its rating on Carlsberg Brewery Malaysia Bhd to "hold", citing a challenging outlook due to rising costs and the threat of beer-smuggling affecting its Singapore business.

“Although Singapore’s operations were one of our main catalysts for Carlsberg, we are now more cautious on its growth from the threat of smuggled cheap beers into the island,” Hong Leong said in a note on Wednesday.

“FY2013 will continue to be challenging from rising raw material (barley) and packaging (aluminium and card boards) prices,” Hong Leong added.

The research house said Carlsberg may expand into other markets besides Singapore through mergers and acquisitions, and may consider getting government’s approval to build a new plant as it has almost reached a maximum capacity output. -- Reuters

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reps for news....
need a beer

thx