British American Tobacco

[winston]

Panic buying may provide more upside

We found that supplies of BAT’s cigarettes were running dry at some retail outlets in Klang Valley in the initial weeks of the MCO’s return in Jan 2021.

BAT said its cigarette distribution was not disrupted like during the previous stay-at-home order. Low supplies could have been caused by panic buying.

Our DDM-based TP inches down to RM15.40 as we revise our risk-free rate\assumption. However, a stronger sales resurgence is an upside risk.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 5088E488DD

[winston]

not vested

British American Tobacco (ROTH MK)
Recent Developments Merely A Distraction

The nicotine vaping regulation is expected to be tabled by 1Q22.

It should address the perceived postponement by the RMC.

Legislation to gradually phase out traditional tobacco is to be expected as well, but the earnings impact should be more than offset by the legalising of the currently untapped vape segment.

We continue to like BAT for its compelling dividend yield of 7.9-8.2% and impending legalisation of vape products to catalyse BAT’s prospects.

Maintain BUY and target price of RM18.20.

Source: UOBKH

https://research.uobkayhian.com/content ... 1baaf6f8b2

[winston]

not vested

Game changer?

Health Minister Khairy Jamaluddin said the Cabinet has given its approval to
present the new tobacco bill in Parliament at the 18 Jul-4 Aug session.

This bill consists of the controversial “generation end game” proposal, which
seeks to ban those born after 2005 from smoking and vaping.

We believe the black market, which continues to thrive, could capitalise on
the ban.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3AE3679EA2

[winston]

not vested

British American Tobacco (ROTH MK)
2Q22: Solid Recovery From Omicron Lull

BAT posted a strong recovery in 2Q22 following the preceding quarter’s lull that was
brought about by the Omicron wave.

We are unsurprised by the negative sentiment caused by the potential tobacco controls that might be tabled with the tobacco bill.

That said, the nicotine vaping potential far outweighs the intangible sentiment.

We continue to like BAT for its attractive valuations and appealing dividend yield. Maintain BUY and target price of RM16.05.

Source: UOBKH

https://research.uobkayhian.com/content ... 3680fd7710

[winston]

vested

British American Tobacco (ROTH MK)
Sentiment Could Improve Once Regulatory Uncertainty Dissipates

We believe that the passing of the Tobacco and Product Smoking Control Bill in
parliament could ease sentiment over the regulatory uncertainty.

Subsequently, valuations could be catalysed by BAT’s firmly intact fundamentals and are poised to benefit from the legalisation of nicotine vaping that outweighs the generation end-game impact.

Maintain BUY and target price of RM16.05. BAT offers an attractive and sustainable dividend yield of 8.4-10.7% over 2022-24 as well.

Source: UOBKH

https://research.uobkayhian.com/content ... 6fead716de

[winston]

not vested

BAT Malaysia shares surge after 2Q earnings rise

By Izzul Ikram

BAT Malaysia’s net profit rose by over 40% to RM50.95 million for the second quarter ended June 30, 2025 (2QFY2025), from RM36.28 million a year earlier.

The stronger y-o-y earnings came despite lower sales, as lower operating costs attributed to its exit from vapour product Vuse offset lower topline.

Quarterly revenue slipped by 2.45% to RM624.75 million, from RM640.46 million.

The government on Monday announced its intent to impose a full ban on the use and sale of open-system vape products soon, citing growing concerns over their susceptibility to tampering and high prevalence of illicit substances.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/764343

[winston]

British American Tobacco’s 3Q net profit down nearly 90% as new regulations erode sales

By Izzul Ikram

There could be further pressure ahead with the recently announced increase in excise duty, though the full impact on the industry is yet to be determined.

Net profit for the three months ended Sept 30, 2025 (3QFY2025) fell nearly 90% to RM7.02 million.

Sales volume of its combustible products, which was already on a downtrend, fell nearly 50%.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/776078

[winston]

vested

3Q Results

Revenue: -51%; RM 300m
EPS: -89%; RM 7m;
Net Asset RM 1.29

BAT Malaysia Cautiously Optimistic on Volume Outlook

Revenue for the quarter stood at RM301 million compared with RM625 million in Q2FY2025.

Lower revenue is driven by the phasing of shipment volume to meet the new product requirements for new Pictorial Health Warnings coming into effect on 1st October 2025.

Despite the short-term impact, underlying demand remains stable with the legal Industry staying resilient; with a slight decline of 2.5%.

Dunhill continues to grow, gaining 0.2ppt market share.

Operating expenses for the quarter reduced by 12.3% compared to the preceding quarter due to the Group’s cost optimisation efforts amid a challenging operating climate. This cushioned the impact of softer revenue, resulting in the Group delivering a lower but resilient revenue of RM1.25 billion for the year-to-date.

The Board of Directors has declared a third interim ordinary dividend of 5.0 sen per ordinary share amounting to RM14.3 million, payable on 5 December 2025 to shareholders.


https://www.bursamalaysia.com/market_in ... id=3603744

[winston]

vested

British American Tobacco's shares fall sharply as mounting regulatory risks cloud outlook

Overall, the industry outlook remains challenging for BAT, weighed down by regulatory pressures, declining tobacco consumption and limited near-term upside from reduced-risk products.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/776161