Hwang-db 5/10/2009

Highlights

British American Tobacco (RM44.94; Hold; Price Target:
RM44.60; ROTH MK)
Early excise tax hike a surprise
• Mild 5.6% excise tax hike is “good news” to legal
players; immaterial impact on FY09-11F earnings
• But combating illicit cigarette players remains a
challenge
• Maintain Hold with lower TP of RM44.60. Still a good
dividend stock with 5-6% net yield.


Top Glove Corporation (RM7.16; Buy; Price Target:
RM8.50; TOPG MK)
Expect a solid 4Q09
• Rubber gloves demand remains resilient; capacity
utilization raised to 90% (3Q09: 80%)
• ASP raised by 7-10% to reflect higher latex costs; 4Q09
EBITDA margin should hold up at 19%
• Maintain Buy; TP raised to RM8.50.