Affin Daily Insight (LV) - 22 April 2014 - PBK / AXRB / IJM / DMR

Top Calls

Results Note � Public Bank (REDUCE, maintain) - Results below expectations, qoq earnings flattish PBB�s 1Q14 net profit of RM1,016.9m (+5.0% yoy) was below Affin�s forecast of RM4,523m as well as street estimates. The 1Q14 net profit accounted for 22.5% of our full year forecast and 23% of consensus 2014 estimates. The deviation is primarily due to PBB�s lower fund-based income as its 1Q14 deposit growth (annualized growth of 12.8%) had outpaced the annualized loan growth rate of 9.8%. We are still keeping our 2014-16E forecasts unchanged as we believe that the sector momentum will pick-up at a stronger pace in 2H14. No dividends were proposed in 1Q14 (1Q13: NIL). Overall, we reaffirm our REDUCE rating and price target of RM18.00, equivalent to a 2.4x P/B multiple on a 2015E ROE of 19.7%, cost of equity of 10.4% and long-term growth rate of 4%.

Other Calls

Results Note � Axis REIT (ADD, maintain) - Revenue to be driven by yield-accretive acquisitions

Flash Note - IJM Corp (BUY, maintain) - Awarded RM396m building contract

Debt Market Research - Quiet post Easter weekend

Morning News & Market Summary

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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