Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 9.50 |
Showing posts with label RHBCAP. Show all posts
Showing posts with label RHBCAP. Show all posts
April 14, 2015
January 14, 2015
December 30, 2014
New bancassurance agreement with Tokio Marine
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 10.70 |
July 1, 2014
RHBCAP - No significant impact on earnings from aborting Bank Mestika deal
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 9.50 |
March 11, 2014
RHB Cap - Stronger regional prospects moving forward
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 9.50 |
September 2, 2013
RHB Capital Berhad - Expect stronger loan growth and lower loan impairment in 2HFY13
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 9.50 |
July 23, 2013
RHBCAP - Strong IB mandates secured to show impact in 2HFY13.
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 10.00 |
March 18, 2013
RHBCap soars on privatisation news
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
KUALA LUMPUR: RHB Capital Bhd's (RHBCap) shares were traded higher in morning session Monday spurred by news on its possible privatisation, dealers said.
At 11.12am, the investment holding company gained 0.36 per cent or three sen to RM8.48, after hovering between RM8.44 and RM8.56, with 550,600 shares traded.
It was reported that a proposal to privatise RHBCap is on the cards.
The rationale as stated is to prepare the banking group to meet changes proposed by the Financial Services Act (which will include Bank Negara having regulatory supervision on financial holding companies), and to create a more efficient platform for dividend payments and strengthen its capital base.
HwangDBS Vickers Research took the news as positive for RHBCap.
"We see these potential developments to be positive if these materialise. Such a restructuring could put the eventually to be listed RHB Bank Bhd in an improved capital position," it said in a note.
The research house is maintaining its "buy" call on RHBCap with a target price of RM9.30. -- BERNAMA
Company Name: RHB CAPITAL BHD
| Research House: RHB | Price Call: BUY | Target Price: 9.30 |
KUALA LUMPUR: RHB Capital Bhd's (RHBCap) shares were traded higher in morning session Monday spurred by news on its possible privatisation, dealers said.
At 11.12am, the investment holding company gained 0.36 per cent or three sen to RM8.48, after hovering between RM8.44 and RM8.56, with 550,600 shares traded.
It was reported that a proposal to privatise RHBCap is on the cards.
The rationale as stated is to prepare the banking group to meet changes proposed by the Financial Services Act (which will include Bank Negara having regulatory supervision on financial holding companies), and to create a more efficient platform for dividend payments and strengthen its capital base.
HwangDBS Vickers Research took the news as positive for RHBCap.
"We see these potential developments to be positive if these materialise. Such a restructuring could put the eventually to be listed RHB Bank Bhd in an improved capital position," it said in a note.
The research house is maintaining its "buy" call on RHBCap with a target price of RM9.30. -- BERNAMA
February 18, 2013
November 20, 2012
'Overweight' call maintained on banking
Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
KUALA LUMPUR: Kenanga Research has maintained its "overweight" call on the banking sector, as it believes the local banking group will do well in the current conducive banking system with their strong balance sheets and improving earnings.
"We are seeing more evidence that the 'Responsible Lending Guidelines' by Bank Negara Malaysia is already bringing some changes to the banking industry arena," the research firm said in a note.
It expects the softer trading conditions at present to persist in the short term, and, if markets do recover, Maybank and CIMB should see the biggest recovery in their non-interest income earnings in the industry.
Kenanga Research has 'outperform' calls on Maybank with a target price (TP) of RM10.40, PBBANK (TP:RM15.60), RHBCAP (TP:RM8.30), CIMB (TP:RM8.20), AMMB (TP:RM7.40), AFFIN (TP:RM4.40) and BIMB (TP:3.60).
AFG(TP:RM4.00) and HLBANK (TP:RM15.20) are rated as 'neutral'. -- BERNAMA
Company Name: MALAYAN BANKING BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 10.40 |
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 15.60 |
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 8.30 |
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 8.20 |
Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 7.40 |
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 3.60 |
KUALA LUMPUR: Kenanga Research has maintained its "overweight" call on the banking sector, as it believes the local banking group will do well in the current conducive banking system with their strong balance sheets and improving earnings.
"We are seeing more evidence that the 'Responsible Lending Guidelines' by Bank Negara Malaysia is already bringing some changes to the banking industry arena," the research firm said in a note.
It expects the softer trading conditions at present to persist in the short term, and, if markets do recover, Maybank and CIMB should see the biggest recovery in their non-interest income earnings in the industry.
Kenanga Research has 'outperform' calls on Maybank with a target price (TP) of RM10.40, PBBANK (TP:RM15.60), RHBCAP (TP:RM8.30), CIMB (TP:RM8.20), AMMB (TP:RM7.40), AFFIN (TP:RM4.40) and BIMB (TP:3.60).
AFG(TP:RM4.00) and HLBANK (TP:RM15.20) are rated as 'neutral'. -- BERNAMA
April 13, 2012
RHB Cap - OUTPERFORM - A complex merger?
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 9.60 |
We continue to maintain our OUTPERFORM rating on the stockand reiterate our view that value is emerging for RHBCAP at the current level.We recommend investors to bottom-fish the stock into any dips. RHBCAP has beenoutperforming KLFIN by 3.2% since Feb2012, despite its weaker result announcement,and this suggests the stock has limited downside. We are maintaining our target price of RM9.80for the stock based on a targeted FY12 P/BV multiple of 1.7x, being a 19%discount to big-mid cap banks average of 2.1x. RHBCAP stands out from its peersas it currently trades at just 1.36x to its FY12 BV of RM5.66.
RHB-OSK merger seesdelay. Top officials from RHBCAP andOSKIB are reported to share similar views as they spoke at separate pressconferences after the AGMs of their respective companies. According to mediareports, the search for a 'neutral' investment banking head and the need toiron out other 'political and management' issues have been cited by themanagement of both companies as the main reasons for the delay in concludingthe merger between RHBCAP and OSKIB. Other challenges of the merger cited include securing the necessaryapprovals from both the local and overseas regulators. RHBCAP's management is howevereyeing to conclude the merger by the 3Q of 2012, a delay from 1Q2012.
Our views. We believe that the key challenge of theproposed merger could be the culture shock present in the merged entity, as bothinvestment banks have been operating under different business models for a longtime. RHBCAP operates under a conservative approach while OSKIB is more of an entrepreneurdriven IB that is more aggressive towards risk-taking. From what was reported in thenews, we understand that both sides have not agreed on the new management teamstructure of the merged entity as well as the key personnel to head the mergedentity's divisions. As a result, we believe Bank Negara Malaysia will not grantthe green light for the proposed merger yet unless the issues of managementstructure and personnel are ironed out by both parties. We continue to view themerger positively. We believe OSKIB is strategically an ideal fit for RHBCAPand will add a significant diversification of clienteles and scale in thecapital market and also provide an immediate access for RHBCAP into other Aseanmarkets. The proposed merger should be earnings accretive over the medium tolong term.
However, there are near term concerns i.e. 1) the purchaseprice of 1.2x-1.6x BV is not cheap; 2) RHBCAP could increase its capital ratiovia the issuance of new shares and this could lead to a dilution and 3) therisk of greater-than-expected loss rate in its lending portfolio. While thereis a potential impact on earnings dilution due to the above issues, we believethat the share price correction of approximately 34% since its peak hasadequately priced in these concerns. In summary, we see the potential RHBCAPacquisition of OSKIB as a highly attractive long-term strategic transactionwith the near-term risks fully priced in already.
Source: Kenanga
March 28, 2012
Banking - NEUTRAL - 28 March 2012
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Stock Name: AMMB
Company Name: AMMB HOLDINGS BHD
Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD
Stock Name: AFG
Company Name: ALLIANCE FINANCIAL GROUP BHD
Company Name: RHB CAPITAL BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 9.60 |
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
| Research House: KENANGA | Price Call: HOLD | Target Price: 7.90 |
Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 10.40 |
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 15.50 |
Stock Name: AMMB
Company Name: AMMB HOLDINGS BHD
| Research House: KENANGA | Price Call: HOLD | Target Price: 6.70 |
Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD
| Research House: KENANGA | Price Call: HOLD | Target Price: 10.90 |
Stock Name: AFG
Company Name: ALLIANCE FINANCIAL GROUP BHD
| Research House: KENANGA | Price Call: HOLD | Target Price: 3.70 |
The banking sector has moved back towards its fair valueover last three months and in our view, can no longer simply be argued as'being cheap'. Following the recent reporting season, our picks for the sectorhave changed for 2Q2012. We continue to like banks with M&As newsflows aswell as those supported by reasonable valuations. Under this strategy, we likeRHBCAP (OP, TP: RM9.60) and CIMB (MP, TP: RM7.90). MAYBANK (OP, TP: RM10.40)and PBBANK (OP, TP: RM15.50) also remain on our OUTPERFORM ratings as the twooffer reasonable dividend yields. We have however lowered our rating for AMMB(MP, TP: RM6.70) to a Market Perform from an Outperform due to its limitedupside from its current share price. Meanwhile, we are maintaining our MARKETPERFORM ratings on HLBBANK (MP, TP:RM10.90) and AFG (MP, TP:RM3.70) onvaluations ground.
The 4Q11 result trend and outlook saw the banking sectorposting a flat QoQ earnings (1.0%) with underlying profit growth momentumclearly having stalled. Going forward, there are limited opportunities to drivethe sector earnings growth materially beyond our current expectation of a high singledigit growth, given the on-going margin headwind and limited credit chargedsurprise. The 4Q11 reporting period wasalso somewhat uninspiring for the market. Apart from the decline in capitalmarket revenues, in our view, the flat quarterly profit growth through 2011 wasactually due to the lack of policy rate rises. Non-interest incomes continue toexperienced a material decline (-7.3% YoY). We also expect softer tradingcondition to persist in the short term due to the ongoing global economicuncertainties.
Margins emerging signs of softness without any furtherinterest rate hike (-11bps YoY, on average). We believe the margins willcontinue to face a modest headwind in 2012. Credit demand was strong however (11-15% on average vis-''-vis nominalGDP growth of 5.0%) despite the weak external outlook. Going forward, we areforecasting just a low teens credit growth to be driven by the start of theETPrelated projects. Provisioning on newimpaired assets has been reduced but the credit charge is already low. Capitalin the sector remains strong (Industry T-1 Cap Ratio of 12.0% and RWCR of15.9%) ' which is well positioned for Basel 3. This include PBBANK (CCR: 10.7%RWCR: 15.9%) that was previously deemed as being under-capitalised. Going forward, the capital ratio is expectedto remain healthy in supporting lending growth.
Earnings growth islimited. Given our view thatresponsible finance will promote a healthy household lending growth, momentumof the loan growth will hence be lower for a period. As such, our base case forthe system loan growth is broadly in the low teens only. Together with theon-going margin headwinds and limited provisioning surprise, there are limitedopportunities to drive the sector's earnings growth materially beyond ourcurrent expectations of high single digit.
Current valuations. Current valuations of the sector have gone upand the upside from here seems tight after rising 18% as measured by the KLFinancial Index from the October 2011's low. With earnings growth in the rangeof high single-digit to low teens, together with the already tight valuation,we
believe valuation multiple expansions are thus unlikely.Hence, we are increasingly looking to other factors to drive our rating recommendationssuch as M&As opportunities instead of organic growth.
The major bank valuations are 'at the middle of the ranger'of their historical mean valuations, which has typically represented their'fair values' and this will also somewhat cap their absolute performance apart fromthe current uncertain external economic outlook.
To ride on 2Q2012news flows. For stocks, although our Target Price for RHBCAP has beenreduced (due to relative weak earnings), its discount valuation remainssupported by better growth prospects for the year ahead from its potentialmerger with OSK. Following the reporting season and the strong rebound of a fewanchor banks from their October 2011's low i.e. MAYBANK (+5%), PBBANK (+8%), AMMB(+2%), our pecking order has now changed to 1) RHBCAP and 2) CIMB withpotential M&A news flows to rerate these stocks' valuations. Meanwhile,thus far, the foreign shareholding of CIMB is still at its 18-month low despitethe increasing foreign net buying on Bursa Malaysia.
Source: Kenanga
February 29, 2012
RHB Capital: Maintain Sell - Focusing on cutting costs
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Sell maintained. RHB Cap's 2011 results were within expectations, with net profit of RM1.5b up 6% YoY. Fundamentals are improving and management's focus will be on driving down operational and funding costs. Earnings risks nevertheless remain, with potential near-term EPS dilution from the acquisition of Bank Mestika, if the deal materialises. Our earnings forecasts are raised by 9-10% p.a. over FY12-14 and our TP is correspondingly lifted to RM7.20 on a higher 2012 P/BV target of 1.3x (1.2x previously), on a prospective 2012 ROE of 14.1%.
Maybank Research 29 Feb 2012
Click here for full report
Company Name: RHB CAPITAL BHD
| Research House: MAYBANK | Price Call: SELL | Target Price: 7.20 |
Sell maintained. RHB Cap's 2011 results were within expectations, with net profit of RM1.5b up 6% YoY. Fundamentals are improving and management's focus will be on driving down operational and funding costs. Earnings risks nevertheless remain, with potential near-term EPS dilution from the acquisition of Bank Mestika, if the deal materialises. Our earnings forecasts are raised by 9-10% p.a. over FY12-14 and our TP is correspondingly lifted to RM7.20 on a higher 2012 P/BV target of 1.3x (1.2x previously), on a prospective 2012 ROE of 14.1%.
Maybank Research 29 Feb 2012
Click here for full report
RHB Capital - Resilience surprise on the upside HOLD
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: AMMB | Price Call: HOLD | Target Price: 8.20 |
We maintain RHB Capital Bhd (RHB Cap) at HOLD, with a higherfair value of RM8.20/share (vs. RM6.90 previously). This is pegged to a fairP/BV of 1.5x (1.3x previously), based on a higher ROE of 13.2% (12.2%previously) for FY12F.
RHB Cap's 4QYF11 net earnings fell 7.4% QoQ (largely due tohigher loan loss provision). With this, FY11 net earnings came in at 4.1% belowour estimate and 3.0% below consensus forecast of RM1,548mil.
Gross loans growth was at 16.2% in FY11, ahead of its earliertarget of 15%. NIM was 2.57% in FY11 compared with 2.74% in FY10, with thecompression largely caused by a higher cost of funding due to its heavierreliance on the more expensive fixed deposit segment. Nevertheless, netinterest income managed to grow 4.3% overall in FY11. Non-interest incomeposted a commendable growth of 3.7% YoY, considering that there was anunrealised loss relating to its interest rate swap contracts, which came up toRM76mil in total in FY11, a lot less than originally anticipated.
More importantly, the company has largely provided for its exposureto one particular CLO, which is positive and should remove one of the lingeringconcerns over RHB Cap. In addition, credit costs rose to 40bps in 4QFY11 (3QFY11:13bps), which was due partly to weaknesses in selected SME segments.
Gross impaired loans were reduced by 3.2% QoQ, the fifth consecutivequarter of QoQ improvement, aided partly by good recoveries. Gross impairedloans ratio was thus reduced to 3.4% in 4QFY11 from 3.7% in 3QFY11. Loan losscover was relatively steady at 73.8% in 4QFY11 from 75.1% in 3QFY11.
We consider its asset quality to have surprised on the upside, and more importantly, we arefurther reassured that the company has not experienced any major deteriorationin asset quality over the past three months. Based on this, we have revisedupwards our earnings by 13% for FY12F. This is based on a lower credit costs assumptionof 61bps (vs. 80bps previously). The company indicated that credit costs willlikely be better than FY11's 36bps.
The company also indicated that its planned acquisition of BankMestika is now scheduled for completion by mid-2012. We have not yet reflectedthis in our forecasts. The company's new ROE guidance for FY12F is 14%,including Bank Mestika. We maintain RHB Cap at HOLD.
Source: AmeSecurities
RHB Capital (RHBC MK, BUY, FV: RM9.90, Close: RM7.80)
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: OSK | Price Call: BUY | Target Price: 9.90 |
The group's FY11 results were largely in line with consensusand our full-year estimates. However, its 4Q11 sequential earnings were hit bylumpy exceptional provisions for its CLOs, thus raising q-o-q impairment losseson securities by 212%. Sequential pre-provision operating profit growth wascommendable at 15.6% q-o-q, driven by stronger trading income and Islamicbanking income. The stabilization in NIMs and absence of one-off lumpy CLOprovisions in FY12 provide a more promising profit growth outlook for FY12.Maintain FV of RM9.90 based on 1.76x FY12 P/BV, 14.1% ROE. Maintain BUY.
In line. Thegroup's FY11 earnings were largely in line with our full-year forecast, with FY11earnings representing 95.1% of consensus and 96.1% of our full-year forecast. Theslight shortfall (-4% deviation from our earnings) was due to a lumpy spike inq-o-q impairment of its CLOs with an existing carrying value of RM87m securedagainst certain collaterals. FY11 earnings rose at a rather subdued 5.7% y-o-y,while preprovision operating profit posted a marginal contraction of 0.2%y-o-y.
Funding and staffcost were key drags on FY11 performance.Key earnings dampeners included: (i) funding cost pressure from very aggressiveand expensive fixed deposit growth (+28% y-o-y) which pressured net interestmargins (NIMs), and this resulted in a rather lacklustre 4.2% net interestincome growth despite the robust 16.8% loan growth, (ii) 23.5% increase in staff cost due to the undertaking of various staff retention and optimizationmeasures, and (iii) RM65.8mmarked-to-market losses on interest rate derivative instruments to hedge itsfixed rate loans. Among the key earnings drivers were: (i) promising growth traction on Islamicbanking operations (+31.5% y-o-y and +20.1% y-o-y), and (ii) 21.1% decline inloan loss provision which brought the fullyear credit cost down to 34bps vs50bps in FY10.
Positive flip sides. The aggressive deposit gathering strategy inFY11 resulted in a 17bps compression ofNIMs. On the flip side, this has helped lower the group's loan-todepositratio (LDR) from 88.6% to a relatively comfortable 84.0%and thus, easing pressures on funding cost in FY12. With the group's optimalLDR set at just under 90%, the current 84% LDR provides a fair degree ofheadroom to slowdown its deposit growth relative to loans growth and thus,enabling it to sustain its current NIMs in FY12 compared to the steep NIMcompression in FY11.
Source: OSK188
RHB Cap (Hold) - Better FY12 Earnings Outlook
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: HLG | Price Call: HOLD | Target Price: 7.85 |
RHB Cap (Hold)
Better FY12 Earnings Outlook
- FY11 results in line with HLIB and consensus.
- Final div of 11.82 sen and single-tier 5.59 sen, FY11 30% payout in linewith unchanged policy and HLIB's projection
- Missed FY11 ROE KPI due to one-offs but management already gave earlywarning while asset quality as well as loans and deposits growth were ahead ofKPIs.
- FY12 KPI of >14% ROE (post acquisition of Mestika and RI). HLIBROE projection is at the lower end.
- Management assured that it has already made sufficient impairment forthe CLO exposure.
- We expect FY12 earnings enhancement from: 1) absence of the one-offs; 2)guidance of improving NIM; and 3) benefits of 400 new touch points to graduallyfilter through.
- Mestika and OSK M&As slated for completion by1HFY12.
- Raised FY12-13 forecasts by 10-11% (absence ofone-offs).
- Maintain Hold.
- Target price raised to RM7.85 based on Gordon Growthwith ROE of 14.5% and WACC of 11.4%, from RM7.37.
Source: HLIB Research 29 Feb 2012
RHB Capital Bhd - Dragged down by a margin squeeze
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: CIMB | Price Call: HOLD | Target Price: 7.50 |
Target RM7.50
FY11 net profit met our expectations as it accounted for 97% of our forecast and consensus. However, net profit growth at only 5.7% was slow, impacted by a margin squeeze that offset the positive effects of swift loan growth.
RHBCAP - Strong growth, albeit slower
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
RHB Capital; Buy; RM7.80
Price Target: RM9.10; RHBC MK
4Q11/FY11 net profit of RM348m/RM1.5bn in line. Key drag to earnings are RM76m mark-to-market losses from hedging positions, RM40m impairment charge for CLOS and RM20m one-off HR expenses. Maintain Buy and RM9.10 TP.
Source: HwangDBS Research 29 Feb 2012
Company Name: RHB CAPITAL BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 9.10 |
RHB Capital; Buy; RM7.80
Price Target: RM9.10; RHBC MK
4Q11/FY11 net profit of RM348m/RM1.5bn in line. Key drag to earnings are RM76m mark-to-market losses from hedging positions, RM40m impairment charge for CLOS and RM20m one-off HR expenses. Maintain Buy and RM9.10 TP.
Source: HwangDBS Research 29 Feb 2012
February 2, 2012
MIDF 'neutral' on banking sector
Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Stock Name: AFG
Company Name: ALLIANCE FINANCIAL GROUP BHD
KUALA LUMPUR: MIDF Research is neutral on the banking sector as it expects net profits this year to be moderated by slower economic growth.
In a note today, MIDF said loan growth for this year was expected to be dampened and would grow at a slower rate of nine per cent.
It said exports and industrial production were expected to be affected by external environment.
"Eventhough the private sector is expected to cushion the impact from debt crisis and weaknesses of the advanced economies, overall, the growth of the domestic economy would still be impacted," it said.
MIDF said it expected the household sector loan growth to be trending lower for this year due to the new guidelines introduced by Bank Negara Malaysia on responsible financing to the retail sector.
"Judging from the key indicators, loan applications and approval slowed down in December 2011 which suggest a likelihood of a slower loan growth momentum moving into this year," it said.
It maintained its 'buy' calls on RHB Band with a target price of RM9.20 and Alliance Financial Group Bhd at RM4.10.
Meanwhile, HwangDBS Vickers Research expected the banking sector's growth to be led by both retail and business loans.
In a note today, HwangDBS said last year's loan growth hit 13.6 per cent as per its forecast, boosted by 1.5 per cent growth in December 2011.
"Overall, loans growth grew by 12 per cent, while business loans grew by 15 per cent," it said.
HwangDBS has recommended a 'buy' call on Maybank with a target price of RM10.60 for its resilient transactional banking income and dividend yields.
It also picked Hong Leong Bank for the potential synergies as a newly-merged entity. -- BERNAMA
Company Name: MALAYAN BANKING BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 10.60 |
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 9.20 |
Stock Name: AFG
Company Name: ALLIANCE FINANCIAL GROUP BHD
| Research House: MIDF | Price Call: BUY | Target Price: 4.10 |
KUALA LUMPUR: MIDF Research is neutral on the banking sector as it expects net profits this year to be moderated by slower economic growth.
In a note today, MIDF said loan growth for this year was expected to be dampened and would grow at a slower rate of nine per cent.
It said exports and industrial production were expected to be affected by external environment.
"Eventhough the private sector is expected to cushion the impact from debt crisis and weaknesses of the advanced economies, overall, the growth of the domestic economy would still be impacted," it said.
MIDF said it expected the household sector loan growth to be trending lower for this year due to the new guidelines introduced by Bank Negara Malaysia on responsible financing to the retail sector.
"Judging from the key indicators, loan applications and approval slowed down in December 2011 which suggest a likelihood of a slower loan growth momentum moving into this year," it said.
It maintained its 'buy' calls on RHB Band with a target price of RM9.20 and Alliance Financial Group Bhd at RM4.10.
Meanwhile, HwangDBS Vickers Research expected the banking sector's growth to be led by both retail and business loans.
In a note today, HwangDBS said last year's loan growth hit 13.6 per cent as per its forecast, boosted by 1.5 per cent growth in December 2011.
"Overall, loans growth grew by 12 per cent, while business loans grew by 15 per cent," it said.
HwangDBS has recommended a 'buy' call on Maybank with a target price of RM10.60 for its resilient transactional banking income and dividend yields.
It also picked Hong Leong Bank for the potential synergies as a newly-merged entity. -- BERNAMA
January 12, 2012
Proposal for merger submitted to BNM
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Company Name: RHB CAPITAL BHD
| Research House: MIDF | Price Call: BUY | Target Price: 9.20 |
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