Thursday, October 30, 2014

Affin Hwang Capital Daily Insight (LV) - 30 October 2014 - CIMB / WCTHG / ECONOMY - US ECONOMY

Top Calls

Company Update CIMB Group (REDUCE, maintain)

- Forecasts slashed more downside risks

CIMB Niaga
s 3Q14 results continue to disappoint due to a spike in provisions, with more downside risks expected in 4Q14. We have slashed our FY14-16E net earnings by 4.9-8.7%, primarily to account for additional provisions and lowered loan growth to 7.0-7.5%. As a result, our price target has been lowered to RM5.76 from RM6.63. All in, we do not see much reason to turn overly optimistic on the CIMB group despite the proposed merger with RHB Capital and MBSB owing to the risk of high merger cost, challenges in value creation, asset quality issues as well as integration risks with regards to the proposed M&A exercise with RHB Capital and MBSB. Maintain REDUCE, we note that our fair value for CIMB Group is almost equivalent to the merged entitys fair value of RM8.00.


Other Calls

Flash Note - WCT Holdings (BUY, maintain)

- Awarded RM652m building contract

Economy - US Economy - Monetary Policy

- US Fed ends the monthly bond buying program


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts with Thumbnails