Keeping Track

This article first appeared in Personal Wealth, The Edge Malaysia Weekly, on August 17, 2020 - August 23, 2020.
Keeping Track
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Panasonic Manufacturing Malaysia Bhd

Panasonic Manufacturing engages in the manufacturing and sales of electrical home appliances and related components under the Panasonic brand name, as well as providing after-sales services.

For its financial quarter ended March 31, the company recorded a revenue of RM204.65 million, down 9.3% from the previous corresponding quarter. However, profit before tax (PBT) rose 37.3% to RM33.9 million from RM24.7 million.

The company attributes the higher PBT to a foreign exchange gain of about RM8.4 million resulting from a weaker ringgit against the US dollar, as well as lower promotional and marketing expenses incurred.

The company expects domestic demand for its products to decline with the recent restrictions on movement and closure of non-essential services due to the Movement Control Order, even though the MCO has been eased to a recovery phase now. Nevertheless, the company aims to remain resilient in these challenging times.

The stock is trading at a price-earnings ratio of 15.95 times. It closed at RM30.78 on Aug 12, giving the company a market capitalisation of RM1.87 billion, according to Bloomberg.

Heineken Malaysia Bhd

Heineken Malaysia is a brewery involved in the production, marketing and distribution of beers, ciders and non-alcoholic beverages. Its brand portfolio includes Tiger, Guinness, Anchor Smooth, Strongbow and Apple Fox.

For its first quarter ended March 31, its revenue declined 1.8% to RM515.89 million from the previous corresponding quarter while PBT grew 6.3% to RM74.85 million. 

The higher PBT is attributed to an effective Chinese New Year festive campaign in January and February, ahead of the price adjustment on selected products in March, as well as the more efficient commercial spend during the quarter.

The company is committed to mitigating the impact of the Covid-19 crisis on its business as much as possible through initiatives such as the continued implementation of safety and health standard operating procedures to prevent infection, aligning commercial strategies to adapt to the new reality and keeping a very tight rein on its cost base.

The stock is trading at a price-earnings ratio of 20.48 times. It closed at RM21.50 on Aug 12, giving the company a market capitalisation of RM6.49 billion, according to Bloomberg.