Equity Analysis /
Malaysia

MY : Brewers - MCO to weigh down on near-term sales

    Walter Aw
    Walter Aw

    Research Analyst

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    CGS-CIMB
    19 January 2021
    Published byCGS-CIMB

    We expect brewers to be negatively affected by the implementation of a stricter MCO in Malaysia, particularly in terms of lower MLM volumes. We estimate that each fortnight of MCO will negatively impact our FY21F EPS forecasts for Carlsberg and Heineken by 3.2% and 5.9%, respectively. We reiterate Neutral on the brewery sector, with Carlsberg as our top pick.