Maybank (Buy) - Interest in Philippines & Saudi Banks?

Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD

Research House: HLG

Price Call: BUY

Target Price: 10.12

Maybank (Buy)

Interest in Philippines & Saudi Banks?

• Dailies reported that Maybank is interested in Al-Amanah IslamicInvestment Bank of the Philippines,the country's only Islamic commercial bank and acquire additional 17.17% stakein Saudi Arabia-based Anfaal Capital for RM8.6m.
• As at Dec 2010, Al-Amanah had a book value of RM38.8m while it recordeda loss of RM2.7m for the year.
• Thus, any deal would have minor impact on financials.
• Positive about its intention to focus on Islamic banking while Al-Amanahcould (given the proper framework) could flourish and has first mover advantage.
• Meanwhile, the increase stake in Anfaal Capital would also facilitatemore cross-border activities. 
• Maintain Buy.
• Target price maintained RM10.12 based on Gordon Growth with ROE of 15.6%and WACC of 9.9%.

Source: HLIB Research - 12 April 2012