HEINEKEN MALAYSIA BERHAD

Business Summary

Heineken Malaysia Berhad is an alcoholic beverage brewer, with a strong market presence in Asia and Europe. It is one of the 2 breweries operating and listed on the main board of Bursa Malaysia. 

Previously known as Guinness Anchor Berhad, the name was revised to Heineken Malaysia Berhad when Heineken NV acquire Diageo Plc’s stake in GAPL Pte Ltd (GAPL), which holds 51% of Guinness Anchor Berhad.  

Update 09.05.2019

Dividends (5/5): ⭐ ⭐ ⭐ ⭐ ⭐ 

Value (2/5): ⭐ ⭐ 

Financials (5/5): ⭐ ⭐ ⭐ ⭐ ⭐ 

Growth (4/5): ⭐ ⭐ ⭐ ⭐ 

Business (4/5): ⭐ ⭐ ⭐ ⭐ 

Reference: (i) MyKayaPlus Metrics Definition (ii) MyKayaPlus Metric Evaluation Scale


Brands & Portfolio

  • Paulaner Beer
  • Kirin Beer
  • Kilkenny Beer
  • Guinness Stout
  • Tiger Beer
  • Heineken Beer
  • Anchor Beer
  • Strongbow Cider
  • Apple Fox Cider
  • Smirnoff Vodka
  • Anglia Shandy
  • Malta Malt Beverage

2018 Geographical Statistics

Heineken Malaysia Bhd’s principal operating country is in Malaysia. The company is focused only in malt liquor brewing including production, packaging, marketing and distribution of its products, principally in Malaysia. Approximately 1% (2017: 1%) of the total sales is exported, mainly to Asian countries.

 

Financial Performance

Source: HEINEKEN MALAYSIA BHD ANNUAL REPORT

HEIM Bhd has reported stable growth in both its revenues and profits. In the year 2016, we see a spike in revenue as HEIM Bhd actually revised its fiscal year. Hence some quarterly revenue and profits got recognized in FY16. Putting the one-off spike effects aside, we can also see sales and profits have grown upwards steadily

 

Balance Sheet 

 

YearAssets (RM’000)Liabilities (RM’000)Equities (RM’000)Current RatioDebt To Equity (%)
2018940,323569,176371,1471.1328.29%
2017867,780507,265360,5151.2228.02%
2016813,641421,086392,5551.3818.85%
2015692,653316,505376,1481.8919.94%
2014701,670344,861356,8091.6942.04%

During the year 2018, Heineken Malaysia Bhd’s Assets stood at RM940 million. Liabilities were at RM569 million while Equity was at RM371 million. Current ratio maintained above the healthy ratio of 1 while the debt to equity ratio is at 28%. 

Operating Cash Flow & Dividend Paid Out

Source: HEIM BHD ANNUAL REPORT

Again, we can see the one-off spike for FY2016. But generally, we are able to notice that operating cash flow for HEIM Bhd is on a gradual uptrend, which means the company is raking in more and more cash from their operations. Dividends paid out is also on a gradually increasing trend as well. 

Nothing sounds more perfect than seeing customers raising their beer up, singing cheers while knowing that dividends from HEIM Bhd will go pouring into your bank account right?

 

Future Growth

Heineken Malaysia Bhd has a wide array of alcoholic produces to satisfy a wide range of consumers. From its world-famous Heineken to Tiger, brewed to suit Asian’s taste buds, there is a beer for each personality. On top of that, customers who appreciate German beer can opt for Paulaner, while Stout lovers swear by the taste of Guinness. There is of course cider and shandy in their product portfolio as well.

Possibly the upcoming product in their portfolio would be the non-alcoholic beer Heineken 0.0. Consumers can actually enjoy beer and not be impacted by alcohol influence with this new product. 

Price

MyKayaPlus Verdict

Being in the Fast Moving Consumer Goods (FMCG) business sector, HEIM Bhd trades in the region of a Price to Earnings (P/E) ratio of 20x. Yet based on trailing dividend yield, it does present itself as a fair reasonable dividend stock at a yield of 4%, while other food giants listed on the KLCI is giving a yield in the region of 2%.

Is HEIM a stock for you to buy for its dividends return?

 

DISCLAIMER
The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
No warranty is made with respect to the accuracy, adequacy, reliability, suitability, applicability, or completeness of the information contained. The author disclaims any reward or responsibility for any gains or losses arising from direct and indirect use & application of any contents of the article/report/written material

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