Report
UOB
Philip Wong

British American Tobacco - Attractive Catalysts Beyond Near-term Earnings Blip

Although 1H20 earnings are expected to contract, weighed by the MCO, BAT’s outlook
remains firmly intact. We think investors would look beyond this earnings blip and
instead look to its near completed restructuring exercise and over the longer term,
regulation on vaping and e-cigarettes. The addressable vaping market is significant and
we are convinced BAT UK’s existing line-up of products could be well received locally.
Maintain BUY. Target price: RM14.95.
Underlying
British American Tobacco PLC

British American Tobacco is engaged in tobacco and nicotine products. This includes Co.'s Next Generation Products, comprising its vapour and tobacco heating products, and its oral tobacco and nicotine products such as moist snuff and snus. Co.'s U.S business (Reynolds American) brand portfolio which includes Newport, Camel and Pall Mall. These, and other brands including Doral, Misty and Capri, are manufactured in a variety of styles and marketed throughout the U.S. Co. has other international and local cigarette brands including Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, John Player Gold Leaf, State Express 555 and Shuang Xi.

Provider
UOB
UOB

Analysts
Philip Wong

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