KUALA LUMPUR (Feb 21): CIMB IB Research has maintained its “Hold” rating on Heineken Malaysia Bhd at RM22.86 with a higher target price of RM23.20 (from RM20.50) and said Heineken’s FY18 net profit of RM282.5 million (4.6% y-o-y) was in line with house and Bloomberg consensus’ expectations at 100% and 102% of FY18 estimates, respectively.

In a note yesterday, the research house said in 2019, it expects higher sales volume from lower illicit trade, as well as new product launches to offset rising operating costs and raw material prices.

“Maintain Hold with a higher DDM-based target price of RM23.20 as we roll over our valuation year to 2019, it said.