Equity Analysis /
Malaysia

MY : Consumer Staples - Overall - Site tour to “Land Below the Wind”

    Walter Aw
    Walter Aw

    Research Analyst

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    CGS-CIMB
    18 July 2022
    Published byCGS-CIMB

    From 13-15 Jul 2022, we hosted a consumer-based site tour to Kota Kinabalu, Sabah for domestic institutional investors. n We visited four listed companies, two of which are under coverage (QL Resources and CCK) while two are Not Rated (Kim Teck Cheong Consolidated Berhad and Swift Logistics). We also had the opportunity to visit Desa Milk Farm, a Kota Kinabalu-based dairy farm (private company). n We gather that demand for consumer products remains fairly resilient, backed by the inelastic nature of demand. This is despite broad-based price hikes to pass on higher input costs and operating expenses. In the consumer space, our preferred picks are QL Resources and Farm Fresh due to their strong brand equity and defensive nature of demand. We also have an Add call on CCK.