Broker Name: Maybank Research Pte Ltd
Date of Report: October 2, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Nestle (Malaysia) is well-positioned to benefit from the Malaysian government’s MYR100 SARA cash aid, thanks to its dominant range of essential food and beverage products. Sales are expected to recover in 2H25 with diminishing consumer boycotts, festive demand, and government stimulus.
- The company maintains leading market shares in key categories like MILO (hot drinks), Nescafe (coffee mixes), though Maggi (instant noodles) saw a slight dip in market share. Strong brand loyalty and wide product range underpin its resilience.
- Maybank projects a 23% YoY earnings rebound for FY25, with the price target raised to MYR107.00. Dividend yields are solid at 2-3%.
- ESG efforts are above average, with an overall score of 65/100. Initiatives include recyclable packaging, renewable energy, sustainable sourcing, and strong female representation in management and the board.
- Risks include renewed boycotts, supply chain disruptions, and raw material cost spikes. Upsides could come from stronger consumer income and successful product innovation.
- Financially, Nestle Malaysia has a robust cash flow, consistent dividends, and a history of steady capex investment. Gearing is high but manageable given its cash generation.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research website : www.maybank.com/investment-banking
