Tuesday, February 28, 2012

CIMB Group Holdings: Maintain Sell - More optimism ahead

Sell maintained. CIMB's 2011 net profit of RM4.03b (+15% YoY) was in line. That management spent 2011 consolidating its position, building liquidity and driving cost efficiency is a positive. Strong fundamentals notwithstanding, our Sell call is largely premised on expectation of CIMB's valuations narrowing against those of its conventional banking counterparts, given prevailing economic and capital market volatility. Our RM6.80 TP is maintained (target P/BV of 1.9x, 2012 ROE: 16.1%).


Maybank Research 28 Feb 2012

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