Friday, May 25, 2012

CIMB Group Holdings: Maintain Sell - 2012 targets maintained

Earnings in-line. 1Q net profit of MYR1.0b (+10% YoY) was within our expectation and consensus at 24% of full-year estimates. Management remains upbeat and the domestic pipeline remains strong for the group. Amid capital market volatility, nevertheless, we continue to expect valuation premiums for the group to narrow against its conventional peers, with downside risk in the share price from its high foreign shareholding (33% ex MUFJ's 5%). Our Sell call is maintained with an unchanged MYR6.80 TP (1.8x P/BV, ROE 15.8%).

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Source: Maybank Research - 25 May 2012

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