Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Company Name: PUBLIC BANK BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 13.30 |
January 31, 2012
Freight rates have bottomed, but it will be a "long" U-shaped recovery
Stock Name: MAYBULK
Company Name: MALAYSIAN BULK CARRIERS BHD
Company Name: MALAYSIAN BULK CARRIERS BHD
| Research House: MIDF | Price Call: TRADING SELL | Target Price: 1.61 |
HwangDBS Malaysia Equity Research - 31 Jan 2012 (Part 2)
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Highlights
Regional Gaming
A tale of three cities
GENS: Stronger 2H12 will full opening of RWS. GENM: Strong free cashflow from Malaysia's resilient mass market will underpin US expansion plans. GENHK: GGR growth at RWM will remain strong as operations ramp up and future competition is likely to be delayed. GENS and GENT remain our top picks; GENHK's valuation is attractive.
Result Snapshot
Public Bank; Buy; RM13.44Price target: RM14.90; PBKF MK
Sustained healthy momentum
FY11 result was within expectations; slight deviation in non-interest income. Earnings driven by consistent loan growth, stable asset quality and best cost-to-income ratio. Declared 28sen DPS, taking full year dividend to 48sen or 48% payout; future payout at c.50%. Maintain Buy with RM14.90 TP.
Company Name: PUBLIC BANK BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 14.90 |
Highlights
Regional Gaming
A tale of three cities
GENS: Stronger 2H12 will full opening of RWS. GENM: Strong free cashflow from Malaysia's resilient mass market will underpin US expansion plans. GENHK: GGR growth at RWM will remain strong as operations ramp up and future competition is likely to be delayed. GENS and GENT remain our top picks; GENHK's valuation is attractive.
Result Snapshot
Public Bank; Buy; RM13.44Price target: RM14.90; PBKF MK
Sustained healthy momentum
FY11 result was within expectations; slight deviation in non-interest income. Earnings driven by consistent loan growth, stable asset quality and best cost-to-income ratio. Declared 28sen DPS, taking full year dividend to 48sen or 48% payout; future payout at c.50%. Maintain Buy with RM14.90 TP.
DRB-Hicom upgraded to 'outperform'
DRB-Hicom Bhd rose 1.1 percent to RM2.79, on course for its highest close since July 2003.
The stock was upgraded to "outperform" with its so-called fair value increased to RM3.45 from RM2.20 at RHB Capital Bhd after profit estimates were raised, Alexander Chia, an analyst, wrote in a report today. -- Bloomberg
HLIB Research 31 January 2012 (Public Bank; MAHB)
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
Company Name: PUBLIC BANK BHD
| Research House: HLG | Price Call: HOLD | Target Price: 13.90 |
Stock Name: AIRPORT
Company Name: MALAYSIA AIRPORT HOLDINGS BHD
| Research House: HLG | Price Call: BUY | Target Price: 6.80 |
Public Bank (HOLD)
Continued To Deliver
'''' 4QFY11 results were in line with HLIB and consensus.''
'''' 2nd interim single-tier dividend of 28 sen.'' FY11 total of 48 sen (48.3% payout), in line with HLIB's projection and company's unchanged dividend policy of circa 50%.
'''' FY11 loans growth of 13.5% yoy slightly behind target of 14-15% and our assumption of 14% mainly due to overseas operations (only 7%) while domestic growth was 14.1%.
'''' Targeting 12-13% FY12 loans and deposits growth (vs. HLIB's 11%) to offset anticipated 10-15bps erosion in NIM.''
'''' Asset quality continued to improve and remained stable.'' Guidance is for both asset quality and credit charge to stay stable with boost from full adoption of FRS139.''
'''' No issue meeting Basel III requirements and will strive to maintain a lean capital structure.'' BNM's concept paper on counter-cyclical capital buffer is expected by 2014.
'''' FY12-13 forecasts raised by 1.4-1.9% following final results while we introduced FY14 forecast.
'''' Thus, target price raised to RM13.90 (Gordon Growth with ROE of 24.3% and WACC of 9.6%) vs. RM13.45.
''
MAHB (BUY)''
'''' MAHB has proposed raise RM600m for its revised RM3.6-3.9bn capex (previously RM2bn) of KLIA2,'' through private placement exercise involving new share issuance of up to 10% of issued share capital or 110m shares.
'''' The exercise is expected to be completed within 1H12.
'''' The proposed private placement was within our expectation.
'''' We have estimated earnings dilution impact of 4.6% in 2012 (half year impact) and 9.1% in 2013.
'''' We are positive on the long term prospect of KLIA2 development backed by the continuous expansion of low cost airlines and strong demand for regional budget travelling.
'''' Maintain Buy with unchanged target price of RM6.80.
Public Bank (Buy): On a stable growth path
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Solid results. 2011 results were yet another testament to Public Bank's solid management capabilities and its unwavering position as Malaysia's premier retail bank. 4Q11 net profit rose 4% YoY to RM877m, contributing to a full-year earnings growth of +14% YoY to RM3.48b. Public Bank continues to be a safe haven amid current volatility, with impeccable fundamentals. Our Buy call is unchanged, as is our TP of RM14.60 (2012 P/BV of 2.8x, ROE: 22.3%).
Maybank Research 31 Jan 2012
Click here for full report
Company Name: PUBLIC BANK BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 14.60 |
Solid results. 2011 results were yet another testament to Public Bank's solid management capabilities and its unwavering position as Malaysia's premier retail bank. 4Q11 net profit rose 4% YoY to RM877m, contributing to a full-year earnings growth of +14% YoY to RM3.48b. Public Bank continues to be a safe haven amid current volatility, with impeccable fundamentals. Our Buy call is unchanged, as is our TP of RM14.60 (2012 P/BV of 2.8x, ROE: 22.3%).
Maybank Research 31 Jan 2012
Click here for full report
RHBInvest Research Highlights 31st January 2012
Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD
Stock Name: UMW
Company Name: UMW HOLDINGS BHD
Company Name: DRB-HICOM BHD
| Research House: RHB | Price Call: BUY | Target Price: 3.45 |
Stock Name: UMW
Company Name: UMW HOLDINGS BHD
| Research House: RHB | Price Call: SELL | Target Price: 6.20 |
31st January 2012
| Top Story |
| Wah Seong ' A Quiet 2012? Market Perform Visit Note - We met up with Wah Seong's management recently and came away positive on: 1) news that the domestic pipe-coating contracts are picking up; 2) the progress with the Insituform JV; and 3) the ongoing endeavour to segregate the two core business, with the aim for better operational focus. - However, our concerns are: 1) the uncertainty of the domestic pipe-coating contract awards; and 2) the lack of a large international project to anchor earnings for 2012. |
| Sector Update |
| Motor ' Storm In A Teacup Neutral (Upgraded) Sector Update DRB-HICOM ' Fair value raised to RM3.45 Outperform (Upgraded) UMW ' Fair value at RM6.20 Underperform - Recent media reports suggest that banks are considering measures to tighten HP lending, including restricting buyers to a maximum of two car loans at any one time reducing the margin of financing for the second HP loan (65-70%) and also for loans for "luxury" makes (50%). - We understand that there is no official directive from Bank Negara (BNM). In our opinion, the possible measures are not likely to have a significant impact on auto sales given that the majority of HP borrowers have only one car loan. |
| Corporate Highlights |
| Public Bank ' Results in line but dividend slightly disappointing Outperform Results / Briefing Note - Public Bank's 4Q11 results were in line with our and consensus estimates but the interim net DPS of 28 sen declared was below our expected 31.5 sen. Full-year net payout was 48.3% was below our 52.5% assumption, which we suspect was partly to conserve capital as BNM has yet to announce its stand on the countercyclical buffer. |
FY11: In line with consensus
Stock Name: PBBANK
Company Name: PUBLIC BANK BHD
Company Name: PUBLIC BANK BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 13.00 |
A mathematical analysis of its Dividend Reinvestment Plan
Stock Name: MAYBANK
Company Name: MALAYAN BANKING BHD
Company Name: MALAYAN BANKING BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 7.80 |
Greater Room For Upside Surprise
Stock Name: MBSB
Company Name: MALAYSIA BUILDING SOCIETY BHD
Company Name: MALAYSIA BUILDING SOCIETY BHD
| Research House: OSK | Price Call: BUY | Target Price: 2.70 |
Subscribe to:
Posts (Atom)