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Monday, September 26, 2016

Yee Lee shares up after securing Suntory distributorship

Yee Lee shares up after securing Suntory distributorship
By Gho Chee Yuan / theedgemarkets.com | September 26, 2016 : 12:11 PM MYT

KUALA LUMPUR (Sept 26): Yee Lee Corp Bhd shares rose as much as seven sen or 3% after the group secured the Ribena and Lucozade drinks distributorships in Peninsular Malaysia from Japan-based Suntory Holdings Ltd.

Yee Lee shares rose to their highest so far today at RM2.35. At 11:14am, the shares were traded at RM2.33 for a market value of RM438.62 million.

The stock saw 180,000 shares traded.

Last Friday, Yee Lee said its unit Yee Lee Marketing Sdn Bhd signed the distribution agreement with Suntory Beverage & Food Malaysia Sdn Bhd.

Yee Lee said the three-year agreement between last Friday (September 23, 2016) and September 22, 2019 excluded Pulau Langkawi.

Today, UOB Kay Hian Securities (M) Sdn Bhd said the research firm believed Yee Lee was "in a good position" to secure distributorships for Suntory’s other beverages after clinching the Ribena and Lucozade deals.

In a note, UOB Kay Hian said it maintained its "buy" call on Yee Lee shares with an unchanged target price of RM2.70.

"We make no changes to our forecast now due to our assessment of modest earnings impact," UOB Kay Hian said.

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