Company Coverage
Heineken Malaysia (HEIM MK): 1H26: Below Expectations; Inventory Adjustment Continues
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM19.10
RM21.80
+14.1%
RM24.70
Analyst
Highlights
- 1H26 results missed expectations on weaker-than-expected sales volume.
- Revenue declined 19.5% yoy as persistently soft sentiment and low sales resulted in bottlenecks at the distributor level
- We trim our 2026/27/28 forecasts by 23%/8%/7% respectively as we impute the continued impact of the inventory adjustment. Maintain BUY with a lower target price of RM21.80 (from RM24.70 previously).
Analysis
- Below expectations. Heineken Malaysia (Heineken) reported a core net profit of RM156.7m (-24.1% yoy) on revenue of RM1.1b (-15.7% yoy). We
arrive at this number after stripping out RM1.7m in provisions for inventory write-offs. This missed expectations, making up only 35% of both our and consensus full-year forecasts. The negative deviation stemmed largely from a larger-than-expected decline in sales volume. An interim dividend of 40 sen was announced, unchanged yoy.
Highlights
- 1H26 results missed expectations on weaker-than-expected sales volume.
- Revenue declined 19.5% yoy as persistently soft sentiment and low sales resulted in bottlenecks at the distributor level
- We trim our 2026/27/28 forecasts by 23%/8%/7% respectively as we impute the continued impact of the inventory adjustment. Maintain BUY with a lower target price of RM21.80 (from RM24.70 previously).
Analysis
- Below expectations. Heineken Malaysia (Heineken) reported a core net profit of RM156.7m (-24.1% yoy) on revenue of RM1.1b (-15.7% yoy). We
arrive at this number after stripping out RM1.7m in provisions for inventory write-offs. This missed expectations, making up only 35% of both our and consensus full-year forecasts. The negative deviation stemmed largely from a larger-than-expected decline in sales volume. An interim dividend of 40 sen was announced, unchanged yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
RM19.10
RM21.80
+14.1%
RM24.70
Analyst
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