Yeo Hiap Seng a 'buy': AmInvestment

by **hlk** Tue 22 May 2012, 19:44

The research arm of AmInvestment Bank started coverage on drinks
manufacturer Yeo Hiap Seng Bhd with a "buy" call and a target price of
RM3.90 (US$1.24) per share thanks to its expansion into Indonesia,
Southeast Asia's largest economy.

AmInvestment said Yeo Hiap
Seng is a dominant food and beverage company, with about 80 percent of
group revenues coming from beverages marketed in Singapore and Malaysia
under its iconic Yeo's brand.

"Yeo Hiap Seng is setting up a
new Asian softs drinks production plant in Indonesia, possibly by end
financial year 2013," AmInvestment said in a note to clients.

"This would shorten supply chain time and cut logistic costs, while
also demonstrating its commitment to this potentially huge consumer
market." -- Reuters