Shariah Setting
BAT - British American Tobacco [Status - 2020]
Member Star
Posts: 2
Joined: Feb 2020
Male, MYS
23 Feb 2020, 11:25 AMPost #1


It seems that BAT stock rises recently and people getting all *hyped* out over it. Indeed there is a growth but what concerns me would still be the existing impact of illicit cigarettes in this market.

Based on actual facts that I know:

- 6 out of 10 cigarettes consumed in Malaysia is illicit as proven from the news as well

- The research house has a hold call on BAT, and slashed its price target on the share from RM19.20 to RM11.50 previously

- Illicit market doubled since the surge in excise duty in 2015 (33.5% in 2015 vs 63% in 2019) 

Well this is my skeptism on the current growth. As long as the governments are not imposing anything drastic to tackle illicit cigarettes, I don't think it's a wise choice to invest in BAT but again I might be wrong so I would like to hear more feedbacks from you.



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