Stock Name: AMMB
Company Name: AMMB HOLDINGS BHD
KUALA LUMPUR: AMMB HOLDINGS BHD [] shares advanced on Tuesday, Aug 16 after its net profit for the first quarter ended June 30, 2011 rose 19.9% to RM441.52 million from RM368.28 million a year earlier, underpinned by higher income growth as well as improved asset quality with lower charge offs and allowances.
At 9.04am, AMMB added four sen to RM6.52 with 35,500 shares traded.
Revenue for the quarter rose to RM1.95 billion from RM1.70 billion in 2010. Earnings per share was 14.75 sen, while net assets per share was RM3.54
MIDF Research maintained its Buy call on AMMB and raised its earnings forecast for FY12 by 12% after taking into account stronger growth in non interest income, improved asset quality as well as consistency in operating expenses against total income.
'We maintain Buy recommendation for AMMB with target price of RM7.30 by ascribing a PE of 13.4X against FY12 EPS of 54.4 sen. We have ascribed a lower PE of 13.4X which is the 5 years average of the PE band.
'Moving forward, AMMB will embark on a 3 years plan to improve return from FY12-FY14. Key strategies of AMMB are profitable growth and rebalancing, diversification and new business development, non-interest income and deposit growth, and customer centricity,' the research house said on Aug 16.
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Company Name: AMMB HOLDINGS BHD
| Research House: MIDF | Price Call: BUY | Target Price: 7.30 |
KUALA LUMPUR: AMMB HOLDINGS BHD [] shares advanced on Tuesday, Aug 16 after its net profit for the first quarter ended June 30, 2011 rose 19.9% to RM441.52 million from RM368.28 million a year earlier, underpinned by higher income growth as well as improved asset quality with lower charge offs and allowances.
At 9.04am, AMMB added four sen to RM6.52 with 35,500 shares traded.
Revenue for the quarter rose to RM1.95 billion from RM1.70 billion in 2010. Earnings per share was 14.75 sen, while net assets per share was RM3.54
MIDF Research maintained its Buy call on AMMB and raised its earnings forecast for FY12 by 12% after taking into account stronger growth in non interest income, improved asset quality as well as consistency in operating expenses against total income.
'We maintain Buy recommendation for AMMB with target price of RM7.30 by ascribing a PE of 13.4X against FY12 EPS of 54.4 sen. We have ascribed a lower PE of 13.4X which is the 5 years average of the PE band.
'Moving forward, AMMB will embark on a 3 years plan to improve return from FY12-FY14. Key strategies of AMMB are profitable growth and rebalancing, diversification and new business development, non-interest income and deposit growth, and customer centricity,' the research house said on Aug 16.
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