Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
RHB Capital Bhd's (RHB Cap) fundamental valuation is intact, with the target price remaining at RM10.00, says HwangDBS Vickers Research Sdn Bhd.
This was based on the assumption of a five per cent long-term growth, 10.5 per cent cost of equity and 16 per cent return on equity, it said in a research note today.
HwangDBS said RHB Cap remains attractive despite Maybank and CIMB have jointly announced that they would not pursue a merger with RHB Cap at this juncture.
This has given RHB Cap good domestic growth prospects and gradual regional expansion, it said.
"We expect net interest margin compression to be less severe in the financial year 2011, while non-interest income is expected to continue to grow strongly with a healthy capital market, coupled with potential benefits from the government's Economic Transformation Programme," it said.
Meanwhile, RHB Cap is further expanding its presence in Singapore via AXS stations for loan repayments or products and services enquiry.
It will also commence money changing services operations at Changi Airport next month.
The Mestika acquisition is still pending approval from Bank Indonesia and Bapepam while the Securities Commission has granted another six months extension for RHB Cap's RM1.3 billion rights issue.
The exercise is expected to be completed by the end of the third quarter this year. -- BERNAMA
Company Name: RHB CAPITAL BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 10.00 |
RHB Capital Bhd's (RHB Cap) fundamental valuation is intact, with the target price remaining at RM10.00, says HwangDBS Vickers Research Sdn Bhd.
This was based on the assumption of a five per cent long-term growth, 10.5 per cent cost of equity and 16 per cent return on equity, it said in a research note today.
HwangDBS said RHB Cap remains attractive despite Maybank and CIMB have jointly announced that they would not pursue a merger with RHB Cap at this juncture.
This has given RHB Cap good domestic growth prospects and gradual regional expansion, it said.
"We expect net interest margin compression to be less severe in the financial year 2011, while non-interest income is expected to continue to grow strongly with a healthy capital market, coupled with potential benefits from the government's Economic Transformation Programme," it said.
Meanwhile, RHB Cap is further expanding its presence in Singapore via AXS stations for loan repayments or products and services enquiry.
It will also commence money changing services operations at Changi Airport next month.
The Mestika acquisition is still pending approval from Bank Indonesia and Bapepam while the Securities Commission has granted another six months extension for RHB Cap's RM1.3 billion rights issue.
The exercise is expected to be completed by the end of the third quarter this year. -- BERNAMA
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