Stock Name: PBBANKCompany Name: PUBLIC BANK BHDResearch House: HWANGDBS | Price Call: HOLD | Target Price: 15.30 |
HwangDBS Vickers Research has maintained its 'Hold' call on PPB Group, with a RM15.30 price target within a year.
HwangDBS Vickers has projected PPB's price earnings ratio to be at 17.5 to 18 times for financial year 2014-2015 on the back of modest growth.
The research house has forecast the company's margin to expand to 7.3 per cent this year as compared to 6.6 per cent last year based on stable wheat prices and better efficiency in its Indonesian operations.
On the net profit, HwangDBS has forecasted the group to record RM1.079 billion in the 2014 financial year from RM994 million last year.
For 2015 and 2016, PPB's net profit is expected to hit RM1.109 billion and RM1.157 billion, respectively.-- Bernama