Several catalysts. Earnings momentum will likely be moderate due to
management's cautious stance, but there are several catalysts to the
share price. These include a) potential FRS139 writebacks, b) the
potential listing of Bank of Chengdu (BOC) and c) attempts at maximizing
its s108 tax credits. Meanwhile, our FY12-13 ROE forecasts of 15+% are
below management’s target of 16-17% and any upside surprise is likely to
emanate from cost savings, we believe. With these catalysts in mind, a
higher P/BV is warranted. Our TP is raised to MYR14.60, pegged to a FY12
P/BV of 2.1x (1.7x previously) and we upgrade ourcall to a BUY.
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Source: Maybank Research - 9 July 2012
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