KUALA LUMPUR: Shares of British American Tobacco (Malaysia) Bhd rose following the company's report of a 3.3 per cent increase in overall trading volume for the third quarter.
At 11.15am, the stock climbed 8.18 per cent, adding 59 sen to RM7.80 from its previous close of RM7.21.
It reached a peak of RM7.85 during the day, with a market capitalisation of RM2.22 billion.
Year-to-date, BAT Malaysia's share declined 15.3 per cent.
The tobacco company posted a 0.5 per cent rise in revenue totalling RM609.9 million, attributed to a better product mix and increased sales from vapour products, partially offset by higher investment.
BAT Malaysia said it acknowledged that the Control of Smoking Products for Public Health Act 2024 and its associated regulations had been officially gazetted and took effect on Oct 1, 2024.
"While the new Act and its regulations have taken effect, it is still too early to make an assessment on the impact of the Act and its regulations on the group's business," it said.
CIMB Securities said the new regulations could affect the company in two main ways: first, its sales and marketing channels for vapour products will face restrictions; second, it will be required to introduce new vapour products that comply with the updated regulations, including a nicotine limit of 20 mg/ml, which will take effect on Oct 1, 2025.
"Failure to address these changes effectively could pose challenges for the group to ramp up its sales contribution from its vapour products (from about 2.0 per cent currently to its target of 15 per cent to 30 per cent revenue share in the next three to five years)," it said.