Tuesday, February 28, 2012

Hong Leong Bank: Maintain Hold - Merger benefits filtering through

Results above forecasts. HL Bank's 2QFY12 net profit of RM788m (+44% YoY) was above our and consensus expectations, largely on account of lower-than-expected provisions. While we are positive on merger benefits filtering through, valuations are fair at this stage, in our view. Our forecasts are revised up by about 10% for FY12 and FY13 respectively, and our TP is raised to RM11.60 (P/BV of 1.7x, CY2012 ROE: 15.5%). Hold maintained.

Maybank Research 28 Feb 2012

Click here for full report

No comments:

Post a Comment