Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Research House: HWANGDBS
Company Name: MALAYAN BANKING BHD
Research House: HWANGDBS
HWANGDBS Vickers Research Sdn Bhd maintained a "Buy" call on Malayan Banking Bhd (Maybank) with a target price of RM10.80 as it saw a good momentum for the bank's second-quarter performance.
Maybank's net profit of RM1.12 billion, chalked up in the second-quarter financial year 2011, was driven by higher net interest income and Islamic banking income coupled with lower provisions, the research house said in a note today.
"Our target price is equivalent to 2.5 times calendar year 2011 book value, still below its ten-year historical high of 2.7 times.
"We tweaked our financial year 2011 to financial year 2013 estimates after accounting for the new mix of non-interest income and operating expenses," it said.
Another research firm, ECM Libra Investment Research, downgraded its target price for Maybank from RM10.26 to RM9.96.
It said the adjustment made to Maybank's share base and reserve was based on the fact that its dividend reinvestment plan participation rate of almost 90 per cent had surpassed expectation.
"Key risk include lower-than-expected loans growth, net interest margin compression and deterioration in asset quality," ECM Libra said.
However, the research firm maintained a "Buy" call on Maybank as the bank continued to trade its historical price per book valuation. - BERNAMA
Maybank's net profit of RM1.12 billion, chalked up in the second-quarter financial year 2011, was driven by higher net interest income and Islamic banking income coupled with lower provisions, the research house said in a note today.
"Our target price is equivalent to 2.5 times calendar year 2011 book value, still below its ten-year historical high of 2.7 times.
"We tweaked our financial year 2011 to financial year 2013 estimates after accounting for the new mix of non-interest income and operating expenses," it said.
Another research firm, ECM Libra Investment Research, downgraded its target price for Maybank from RM10.26 to RM9.96.
It said the adjustment made to Maybank's share base and reserve was based on the fact that its dividend reinvestment plan participation rate of almost 90 per cent had surpassed expectation.
"Key risk include lower-than-expected loans growth, net interest margin compression and deterioration in asset quality," ECM Libra said.
However, the research firm maintained a "Buy" call on Maybank as the bank continued to trade its historical price per book valuation. - BERNAMA
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