Oldtown expected to post higher Q2 results (5201)
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Oldtown expected to post higher Q2 results (5201)
OSK Research Sdn Bhd expects Oldtown Bhd's results for the second quarter of its financial year 2012 to exceed its
previous estimates, coming in at RM11 million to RM12 million.
In a note today, OSK said these numbers were likely to be driven by stronger sales for its fast-moving consumer good (FMCG) products in China, surging 58 per cent in first half in financial year 2012 compared with the same period of last
year.
"These would also be prompted by better-than-expected food and beverage sales due to promotions such as its newly-introduced set lunch menu," it said.
OSK said it would raise Oldtown's financial years 2012 and 2013 core earnings forecasts by 6.3 per cent and 13.4 per cent respectively, mainly based on expectation of a higher utilisation rate at its upcoming FMCG plant in financial year 2013.
"This also includes the higher average selling prices for its FMCG products, and higher average spending per customer, it said.
The research firm said Oldtown's distributors would substantially stock up on Oldtown coffee products next year once its new factory in Ipoh started to cater to increasing demand.
Hence, OSK said, it would continue to like Oldtown's exciting growth prospects, supported by potentially major developments next year.
OSK said it would reiterate its 'buy' recommendation on the stock with a revised fair value of RM2. -- Bernama
previous estimates, coming in at RM11 million to RM12 million.
In a note today, OSK said these numbers were likely to be driven by stronger sales for its fast-moving consumer good (FMCG) products in China, surging 58 per cent in first half in financial year 2012 compared with the same period of last
year.
"These would also be prompted by better-than-expected food and beverage sales due to promotions such as its newly-introduced set lunch menu," it said.
OSK said it would raise Oldtown's financial years 2012 and 2013 core earnings forecasts by 6.3 per cent and 13.4 per cent respectively, mainly based on expectation of a higher utilisation rate at its upcoming FMCG plant in financial year 2013.
"This also includes the higher average selling prices for its FMCG products, and higher average spending per customer, it said.
The research firm said Oldtown's distributors would substantially stock up on Oldtown coffee products next year once its new factory in Ipoh started to cater to increasing demand.
Hence, OSK said, it would continue to like Oldtown's exciting growth prospects, supported by potentially major developments next year.
OSK said it would reiterate its 'buy' recommendation on the stock with a revised fair value of RM2. -- Bernama
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