Monday, June 25, 2012

BIMB Holdings: Downgrade to Sell - Valuations Fair For Now

Priced in. Much as we continue to view Bank Islam's and Syarikat Takaful's (STMB MK, MYR6.12, Not Rated) prospects positively, the recent runup in BIMB’s share price is cause to pause and take stock. Our SOP-derived TP of MYR3.00 for BIMB prices Bank Islam at a P/BV of 1.6x (2012 ROE: 12.7%) and STMB at its current P/BV of 2x, valuations which we believe are fair at this stage. For this reason and with the stock up 58% YTD, we are downgrading BIMB to a SELL.

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Source: Maybank Research - 25 June 2012

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