Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Company Name: BIMB HOLDINGS BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 3.96 |
Showing posts with label BIMB. Show all posts
Showing posts with label BIMB. Show all posts
March 16, 2015
September 30, 2013
BIMB - All the positives have been priced in
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Company Name: BIMB HOLDINGS BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 4.40 |
November 20, 2012
'Overweight' call maintained on banking
Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
KUALA LUMPUR: Kenanga Research has maintained its "overweight" call on the banking sector, as it believes the local banking group will do well in the current conducive banking system with their strong balance sheets and improving earnings.
"We are seeing more evidence that the 'Responsible Lending Guidelines' by Bank Negara Malaysia is already bringing some changes to the banking industry arena," the research firm said in a note.
It expects the softer trading conditions at present to persist in the short term, and, if markets do recover, Maybank and CIMB should see the biggest recovery in their non-interest income earnings in the industry.
Kenanga Research has 'outperform' calls on Maybank with a target price (TP) of RM10.40, PBBANK (TP:RM15.60), RHBCAP (TP:RM8.30), CIMB (TP:RM8.20), AMMB (TP:RM7.40), AFFIN (TP:RM4.40) and BIMB (TP:3.60).
AFG(TP:RM4.00) and HLBANK (TP:RM15.20) are rated as 'neutral'. -- BERNAMA
Company Name: MALAYAN BANKING BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 10.40 |
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 15.60 |
Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 8.30 |
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 8.20 |
Stock Name: AMBANK
Company Name: AMMB HOLDINGS BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 7.40 |
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 3.60 |
KUALA LUMPUR: Kenanga Research has maintained its "overweight" call on the banking sector, as it believes the local banking group will do well in the current conducive banking system with their strong balance sheets and improving earnings.
"We are seeing more evidence that the 'Responsible Lending Guidelines' by Bank Negara Malaysia is already bringing some changes to the banking industry arena," the research firm said in a note.
It expects the softer trading conditions at present to persist in the short term, and, if markets do recover, Maybank and CIMB should see the biggest recovery in their non-interest income earnings in the industry.
Kenanga Research has 'outperform' calls on Maybank with a target price (TP) of RM10.40, PBBANK (TP:RM15.60), RHBCAP (TP:RM8.30), CIMB (TP:RM8.20), AMMB (TP:RM7.40), AFFIN (TP:RM4.40) and BIMB (TP:3.60).
AFG(TP:RM4.00) and HLBANK (TP:RM15.20) are rated as 'neutral'. -- BERNAMA
April 13, 2012
Banking - OVERWEIGHT - Bright spots for Responsible Finance them
Stock Name: AFFIN
Company Name: AFFIN HOLDINGS BHD
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD
Company Name: AFFIN HOLDINGS BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 4.30 |
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
| Research House: KENANGA | Price Call: BUY | Target Price: 2.90 |
Stock Name: CIMB
Company Name: CIMB GROUP HOLDINGS BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 8.50 |
Stock Name: HLBANK
Company Name: HONG LEONG BANK BHD
| Research House: KENANGA | Price Call: HOLD | Target Price: 10.90 |
Smaller banks are trading at a substantial discount to theirpeers despite their improving balance sheets. Most banks have been rerated over2009-2011 as their share prices have climbed 102% with positive consensus EPSrevisions. Nonetheless, with banks are now trading at 1.8x forward with average16.3% ROE, this makes the bigger banks seem more expensive as compared with the smaller banks, which are only pricedat 0.9x forward P/BV (a 50% discount) despite an estimated 10.3% ROE. As such, we believe it is time to visit the smallerbanks to find the potential dark horse winners for 2012/13.
Responsible Lendingis a key theme agreed by the consensus in 2012. More responsible policyresponse will reduce systematic risks and thus should benefit banks' asset quality.As such, we reckon that the domestic banking system should continue to see the multi-yearof balance sheet enhancement.
The banks' improvingasset quality remains as our central case. The increased trust in banks'asset quality and their continuous improvement in the same are likely to support banks' earnings growth inthe near future with lower credit cost. We reckon that BIMB and AFFIN will be the keybeneficiaries for this theme. In a nutshell, we see small banks being reratedin 2012/13 as their valuation could rise closer to their bigger peers' currentvaluations and their improving asset qualities could provide the trigger forthis. We will initiate coverage on AFFINand BIMB, driven by the following catalysts:
- Responsible Finance. Bank Negara Malaysia (BNM) has issued a new set of guidelines toensure household debts do not pose a threat to the stability of the financialsystem. More policy responses willreduce systematic risk and benefit bank valuation multiples. The progress ofcontinuous improving asset quality is now in motion and will be long lasting inour view, with positive consequences for banks' earnings.
- The two banks above should benefit from thesustainable downtrend of non-performing loans that we have witnessed thus far.Furthermore, due to the perception of weaker asset quality, the tighterregulations that BNM imposed of late i.e. 70% LTV cap for 3rd mortgages should in a way improve their assetquality going forward.
- Hence, for 2012, we are likely to see the twobanks achieving a conservative earnings growth rate of 5%-6% on the back of9%-10% growth in loans. We reckon that our current estimates areconservative judging from their businessvolumes, fees growth and credit qualities. As such, we believe that they arepoised for upward revisions over the next 12-24 months. We believe the twobanks would be able to achieve healthy profit growth, with provisioningcharges continuing to drop towards andpossibly below their normalised levels.
- Pursuant to improving asset qualities and aresultant lower credit costs, their FY12/13 Return on Equity (ROE) of 10.3%would be lower than the bigger banks' ROE rate of 13%-25% while also trading atundemanding valuations (of 0.9x P/BV) (see Figure 1).
We believe the two dark horses above share a commoncharacteristic i.e. they have decent and liquid balance sheets (reasonable RWCR and low L/D ratio) but generallysub-par in ROAs and ROEs (in part due to their low leverage levels). Thus far, investors have yet to be convincedby their recent management changes or new strategies, perhaps due in part totheir previously less impressive historic track records in showing improvinggrowth and profitability. In addition, they also need some critical executionrelating to regional growth and M&As may be needed and central to themrealising their full potentials. Still, our valuation model suggests that smaller banks are currently tradingwell below the overall banking stocks' price multiple ranges. These valuations are likely to play catch-up due to reasons mentioned above.Hence, we strongly believe that AFFIN and BIMB could be the dark horses amongthe banking stocks.
AFFIN: At just 0.7xBV, it deserves more.
We believe AFFIN's potentially higher credit risks aresomewhat priced in by the discount in its valuation, which is already based onmore conservative earnings and credit cost assumptions. With a reasonable 9%ROE and its undemanding valuations (FY13E:10.2x PER, 0.7x P/BV), there is room for its earnings to improve. We are initiating coverage of AFFIN with an OUTPERFORM rating and a target price ofRM4.30.
A tough operating environment had led to previous consensusearnings and price target cuts. However, we believe its current valuation atFY13 P/BV multiple of 0.7x with an estimated ROE of 9.1% is overlypessimistic.
BIMB: Uniquelypositioned for more growth.
We believe BIMB's unique footprint translates into acompetitive edge in funding as well as positioningfor growth as BIMB appears ideally positioned to capture the fastest growth in Malaysia's Islamic financingarea. (Islamic financing has grown at aCAGR of 20% since 2005.) It has a very liquid balance sheet (50% L/F ratio, liquid assets at 40.5% of assets) and the highest proportion of CASA deposits (43%) should drive faster NIMexpansion vs. other larger banks as balance sheet gearing and financings growfaster.
We are initiating coverage with an OUTPERFORM rating and aTP of RM2.90. Its unique footprint translates into a competitive edge. Itscheap funding and long term positioning for growth in Islamic areas also makeit an interesting financial stock to invest in with its current undemanding valuations.
OVERWEIGHT. As a result of our initiation on AFFIN and BIMB with an OUTPERFORM rating for each and coupled with our recent upgrade in CIMB rating to OUTPERRFORM (TP: RM8.50), we are now raisingour sector rating to OVERWEIGHT from NEUTRAL. Following our upgrade of HLBANK(TP: RM10.90) from UNDERPERFORNM to MARKET PERFORM, we have none outstandingUNDERPERFORM call in our banking stock coverage.
Source: Kenanga
March 19, 2012
BIMB Holdings: Maintain Buy - Cautious guidance factored in
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Buy, target price raised. BIMB Holdings' 51%-owned Bank Islam is taking a more cautious approach to lending in 2012 but will place more emphasis on portfolio rebalancing, which we view positively. Much of this cautiousness is reflected in our assumptions, but our net profit forecasts are nevertheless raised by 4-5% on lower credit cost estimates. With a higher target P/BV, our SOP-derived target price for BIMB is raised to RM2.55 from RM2.40.
Maybank Research - 19 March 2012
Click here for full report
Company Name: BIMB HOLDINGS BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.55 |
Buy, target price raised. BIMB Holdings' 51%-owned Bank Islam is taking a more cautious approach to lending in 2012 but will place more emphasis on portfolio rebalancing, which we view positively. Much of this cautiousness is reflected in our assumptions, but our net profit forecasts are nevertheless raised by 4-5% on lower credit cost estimates. With a higher target P/BV, our SOP-derived target price for BIMB is raised to RM2.55 from RM2.40.
Maybank Research - 19 March 2012
Click here for full report
March 8, 2012
BIMB - Managing expectations
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
BIMB Holdings; Hold; RM2.32
Price Target: RM2.20; BIMB MK
Expect 2012 loan growth to moderate and NIM to weaken as competition sets in. Asset quality remains stable; gross NPL ratio (2.6% in FY11) should continue to improve. Downgrade to Hold on more challenging outlook; maintain RM2.20 TP.
Source: HwangDBS Research 8 March 2012
Company Name: BIMB HOLDINGS BHD
| Research House: HWANGDBS | Price Call: HOLD | Target Price: 2.20 |
BIMB Holdings; Hold; RM2.32
Price Target: RM2.20; BIMB MK
Expect 2012 loan growth to moderate and NIM to weaken as competition sets in. Asset quality remains stable; gross NPL ratio (2.6% in FY11) should continue to improve. Downgrade to Hold on more challenging outlook; maintain RM2.20 TP.
Source: HwangDBS Research 8 March 2012
February 29, 2012
BIMB Holdings: Maintain Buy - Decent end to the year
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Maintain Buy. BIMB's 2011 recurring net profit of RM188m (+20% YoY) was within our expectations, but above consensus by about 10%. We continue to like BIMB for exposure to 51%-owned Bank Islam which has been on a stable growth path since its restructuring in 2009, and an undervalued takaful operator, 65%-owned Syarikat Takaful (Takaful). On rolling forward valuations and applying a higher P/BV of 1.3x (from 1.2x) to Bank Islam on a higher expected 2012 ROE of 12%, and 1x P/BV for Takaful, our SOP-based TP is raised to RM2.40 (+17%).
Maybank Research 29 Feb 2012
Click here for full report
Company Name: BIMB HOLDINGS BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.40 |
Maintain Buy. BIMB's 2011 recurring net profit of RM188m (+20% YoY) was within our expectations, but above consensus by about 10%. We continue to like BIMB for exposure to 51%-owned Bank Islam which has been on a stable growth path since its restructuring in 2009, and an undervalued takaful operator, 65%-owned Syarikat Takaful (Takaful). On rolling forward valuations and applying a higher P/BV of 1.3x (from 1.2x) to Bank Islam on a higher expected 2012 ROE of 12%, and 1x P/BV for Takaful, our SOP-based TP is raised to RM2.40 (+17%).
Maybank Research 29 Feb 2012
Click here for full report
BIMB - Robust loan growth
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
BIMB Holdings; Buy; RM2.15
Price Target: RM2.20; BIMB MK
4Q11/FY11 results beat expectation, driven by stronger non-interest income. Robust loan growth at 19% y-oy. Asset quality improved with gross impaired financing dropped to 2.6%.
Source: HwangDBS Research 29 Feb 2012
Company Name: BIMB HOLDINGS BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 2.20 |
BIMB Holdings; Buy; RM2.15
Price Target: RM2.20; BIMB MK
4Q11/FY11 results beat expectation, driven by stronger non-interest income. Robust loan growth at 19% y-oy. Asset quality improved with gross impaired financing dropped to 2.6%.
Source: HwangDBS Research 29 Feb 2012
February 28, 2012
BIMB Holdings (BIMB MK; RM2.16) - BUY
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Company Name: BIMB HOLDINGS BHD
| Research House: CIMB | Price Call: BUY | Target Price: 2.16 |
FY13P/E: N/A, P/BV: 1.3x
- Prices have broken out of its long term triangle pattern in January and have stayed above the triangle support. It appears to be forming a bullish flag pattern just above its moving averages.
- With its indicators in consolidation mode, the bullish flag pattern could continue for a while longer. Nevertheless, it provides traders time to get in.
- The stock is a buy with a stop loss placed below RM2.07. A breakout above the RM2.22 flag resistance would mean that prices are headed back to retest RM2.43 high.
BIMB Holdings Berhad provides all aspects of Islamic banking services. Through its subsidiaries, the Company underwrites family and general takaful (Islamic insurance) and provides stock broking and other related services. BIMB Holdings also has operation in unit trust management, provides training and consultancy services, and leases fixed assets to related companies
Source: CIMB Trader AM - 28th Feb 2012
November 30, 2011
BIMB Holdings (Buy): A 50% payout ratio introduced
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Results below. BIMB's 3Q11 net profit of RM16.3m (-53% YoY, -74% QoQ) was below expectations due mainly to lower investment income and a higher tax rate. Correspondingly, our 2011 and 2012 earnings are cut by 8% and 6% respectively, while our TP is lowered to RM2.05 from RM2.40 on the earnings revision and a lower 2012 P/BV target of 1.1x (1.2x previously), in line with lower peer valuations. Positively though, the group has introduced a 50% dividend payout ratio, which translates to a decent net yield of 4.8-5.2%. Buy maintained.
Maybank research (30 November 2011)
Click here for full report
Company Name: BIMB HOLDINGS BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.05 |
Results below. BIMB's 3Q11 net profit of RM16.3m (-53% YoY, -74% QoQ) was below expectations due mainly to lower investment income and a higher tax rate. Correspondingly, our 2011 and 2012 earnings are cut by 8% and 6% respectively, while our TP is lowered to RM2.05 from RM2.40 on the earnings revision and a lower 2012 P/BV target of 1.1x (1.2x previously), in line with lower peer valuations. Positively though, the group has introduced a 50% dividend payout ratio, which translates to a decent net yield of 4.8-5.2%. Buy maintained.
Maybank research (30 November 2011)
Click here for full report
June 24, 2011
BIMB at the forefront
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
BIMB Holdings Berhad
(June 23, RM1.85)
Initiate coverage at RM1.73 with buy call and target price of RM2.40: Bank Islam, which contributes the bulk (circa 88%) of BIMB's income, delivered impressive earnings improvement in FY10 ended December following its turnaround plan. BIMB's annualised pre-provision profit grew 27% led by robust financing and current account/savings account growth, while net financing margin and asset quality had improved significantly. Given robust domestic consumer spending, BIMB's traction is sustainable. We forecast 24% to 30% earnings growth in FY11/12F, driven by 16% financing growth and improving fee-based income.
On its own, Bank Islam can ride on the untapped potential in Islamic finance in the country, in line with the government's vision to develop Malaysia into an international hub for Islamic finance. Bank Islam, with its experience and expertise in Islamic finance could help other banks (domestic and abroad) to build and expand their Islamic banking and capital markets.
This could be done via a merger, acquisition or strategic stake, like its 20% investment in Amana Bank Ltd, Sri Lanka. Mergers and acquisitions could strengthen Bank Islam's size and market share and create scale for future growth.
Our RM2.40 target price (TP) is based on the Gordon Growth Model and assumes 4% long-term growth rate, 10.3% cost of equity, and 13% return on equity. Key catalysts are: (i) earnings turnaround and sustainability; and (ii) untapped potential in Islamic finance in Malaysia and Asean region. BIMB is currently trading at one times FY11 book value and our RM2.40 TP implies 1.4 times. ' HwangDBS Vickers Research, June 23
This article appeared in The Edge Financial Daily, June 24, 2011.
Company Name: BIMB HOLDINGS BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 2.40 |
BIMB Holdings Berhad
(June 23, RM1.85)
Initiate coverage at RM1.73 with buy call and target price of RM2.40: Bank Islam, which contributes the bulk (circa 88%) of BIMB's income, delivered impressive earnings improvement in FY10 ended December following its turnaround plan. BIMB's annualised pre-provision profit grew 27% led by robust financing and current account/savings account growth, while net financing margin and asset quality had improved significantly. Given robust domestic consumer spending, BIMB's traction is sustainable. We forecast 24% to 30% earnings growth in FY11/12F, driven by 16% financing growth and improving fee-based income.
On its own, Bank Islam can ride on the untapped potential in Islamic finance in the country, in line with the government's vision to develop Malaysia into an international hub for Islamic finance. Bank Islam, with its experience and expertise in Islamic finance could help other banks (domestic and abroad) to build and expand their Islamic banking and capital markets.
This could be done via a merger, acquisition or strategic stake, like its 20% investment in Amana Bank Ltd, Sri Lanka. Mergers and acquisitions could strengthen Bank Islam's size and market share and create scale for future growth.
Our RM2.40 target price (TP) is based on the Gordon Growth Model and assumes 4% long-term growth rate, 10.3% cost of equity, and 13% return on equity. Key catalysts are: (i) earnings turnaround and sustainability; and (ii) untapped potential in Islamic finance in Malaysia and Asean region. BIMB is currently trading at one times FY11 book value and our RM2.40 TP implies 1.4 times. ' HwangDBS Vickers Research, June 23
This article appeared in The Edge Financial Daily, June 24, 2011.
June 23, 2011
BIMB up after HwangDBS Vickers initiates coverage
Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
BIMB HOLDINGS BHD [] shares advanced on Thursday, June 23 after HwangDBS Vickers Research initiated coverage on the stock with a Buy rating and target price of RM2.40.
At 3.15pm. BIMB was up 11 sen to RM1.84 with 2.07 million shares traded.
HwangDBS Vickers Research in a note June 23 said BIMB's core financing activities would drive its earnings and growth.
The research house also said the largely untapped Islamic finance market could expand its market share in the overall industry.
'Our RM2.40 TP is based on the Gordon Growth Model and assumes 4% long term growth rate, 10.3% cost of equity, and 13% ROE.
'Key catalysts are (i) earnings turnaround and sustainability; and (ii) untapped potential in Islamic finance in Malaysia and ASEAN region. BIMB is currently trading at 1.0 times FY11BV and our RM2.40 TP implies 1.4 times,' it said.
Company Name: BIMB HOLDINGS BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 2.40 |
BIMB HOLDINGS BHD [] shares advanced on Thursday, June 23 after HwangDBS Vickers Research initiated coverage on the stock with a Buy rating and target price of RM2.40.
At 3.15pm. BIMB was up 11 sen to RM1.84 with 2.07 million shares traded.
HwangDBS Vickers Research in a note June 23 said BIMB's core financing activities would drive its earnings and growth.
The research house also said the largely untapped Islamic finance market could expand its market share in the overall industry.
'Our RM2.40 TP is based on the Gordon Growth Model and assumes 4% long term growth rate, 10.3% cost of equity, and 13% ROE.
'Key catalysts are (i) earnings turnaround and sustainability; and (ii) untapped potential in Islamic finance in Malaysia and ASEAN region. BIMB is currently trading at 1.0 times FY11BV and our RM2.40 TP implies 1.4 times,' it said.
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