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BAT’s earnings momentum remained strong. 3Q18 earnings rose by
32% qoq to RM145.8m while gross margins leapt 6.6ppts, primarily
driven by front-loading of sales over the remaining July-Aug GST-free
period as speculation mounted on the SST’s price impact.
Consequently, 9M18’s results stood above our expectations but
tracked consensus estimates. Market share of illicit cigarettes also
fell