Friday, July 27, 2012

CIMB Group Holdings: Maintain Sell - CIMB Niaga's 2Q12 Beats Forecasts

Above expectations, but limited impact. CIMB Niaga's 1H12 net profit rose 28% YoY to IDR2.0t, accounting for 55% of our full-year forecast. However, on expectations of a softer 2H12 due to margin compression, our FY12/13 forecasts for CIMB Niaga are raised by just 8-9%, with no material impact (+2%) on CIMB Group’s forecasts, which are maintained. Our SELL call on CIMB Group is unchanged, as is our MYR6.80 TP (1.8x FY12 P/BV, ROE: 15.1%).

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Source: Maybank Research - 27 July 2012

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