Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
AmResearch Sdn Bhd believes Maybank's ability to contain asset quality, higher-than-expected dividends and return-on-equity will be the main re-rating catalysts, going forward.
Maybank, with a higher financial year 2011 net earnings of RM4,450 million with dividend galore, has changed its financial year end to Dec 31 from June 30, resulting in a six-month new financial year from July 2011 to Dec 2011.
AmResearch maintained its "buy" rating for Maybank, with a new fair value of RM10.30, which was tweaked downwards from RM10.40, based on annualised six- month forecasts.
"The changes to fair value came largely from minor fine-tuning of our estimated book value, which is now lower," it said in a research note today.
Meanwhile, OSK Research stated Maybank's higher than-expected dividend payout, bringing the full year net payout ratio to 75 per cent for an attractive gross dividend yield of 6.9 per cent, was by far the highest among banking stocks in Malaysia.
Loan growth expectations may have to be toned down, given the loan-to-deposit ratio at 90 per cent, the research house said, maintaining "buy" call for the local bank.
It highlighted that domestic deposit growth remained healthy at 19 per cent with domestic deposits climbing 20.8 per cent year-on-year.
"However, we note that the strong growth was partially attributed to a 53 per cent year-on-year expansion in the more expensive money market deposits, which hurt margins," OSK said.
Kenanga Research, which retained "outperform rating" for the bank believed earnings upside could come from lower credit charged-off rate, going forward with higher non-interest income contributions of 30 per cent to total income from existing businesses. -- Bernama
Company Name: MALAYAN BANKING BHD
| Research House: AMMB | Price Call: BUY | Target Price: 10.30 |
AmResearch Sdn Bhd believes Maybank's ability to contain asset quality, higher-than-expected dividends and return-on-equity will be the main re-rating catalysts, going forward.
Maybank, with a higher financial year 2011 net earnings of RM4,450 million with dividend galore, has changed its financial year end to Dec 31 from June 30, resulting in a six-month new financial year from July 2011 to Dec 2011.
AmResearch maintained its "buy" rating for Maybank, with a new fair value of RM10.30, which was tweaked downwards from RM10.40, based on annualised six- month forecasts.
"The changes to fair value came largely from minor fine-tuning of our estimated book value, which is now lower," it said in a research note today.
Meanwhile, OSK Research stated Maybank's higher than-expected dividend payout, bringing the full year net payout ratio to 75 per cent for an attractive gross dividend yield of 6.9 per cent, was by far the highest among banking stocks in Malaysia.
Loan growth expectations may have to be toned down, given the loan-to-deposit ratio at 90 per cent, the research house said, maintaining "buy" call for the local bank.
It highlighted that domestic deposit growth remained healthy at 19 per cent with domestic deposits climbing 20.8 per cent year-on-year.
"However, we note that the strong growth was partially attributed to a 53 per cent year-on-year expansion in the more expensive money market deposits, which hurt margins," OSK said.
Kenanga Research, which retained "outperform rating" for the bank believed earnings upside could come from lower credit charged-off rate, going forward with higher non-interest income contributions of 30 per cent to total income from existing businesses. -- Bernama
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