Tuesday, September 5, 2017

FW: AmBank Research - Malayan Banking : Pressure remains on Singapore asset quality Hold, 5 Sep 2017 - Part 1

 

STOCK FOCUS OF THE DAY

Malayan Banking : Pressure remains on Singapore asset quality               Hold

 

We maintain our HOLD call on Malayan Banking (Maybank) with a revised fair value of RM9.10/share (previously RM9.20/share) after lowering our net profit estimates. We have fine-tuned our FY17/18/19 net profit slightly by -2.4%/-0.7%/-0.1% after imputing higher credit cost and OPEX as well as adjusting our total income estimates. Our ROE expectation for FY18 of 10.7% remain unchanged and we continue peg the stock to a P/BV of 1.3x.

 

We remain concerned on the group's GIL ratio which continued to trend upwards as well as the high percentage of oil & gas loans classified as watch list at 43.0%. Pressure remained on its asset quality of oil & gas loans in Singapore of which further deterioration could occur if oil prices fall lower than industry-wide expectation.

 

Others :

Axiata : Mildly positive on Pakistan tower expansion       Buy

Bonia Corporation : Caps year with a turn             Buy

Ikhmas Jaya : A soft patch in 1HFY17        Buy

Titijaya Land : Positive growth sustained               Buy

Bison Consolidated : Proposal for multiple corporate exercises   Hold

Felda Global : Dragged by MSM Sell

 

QUICK TAKES

UMW Holdings : JV with Komatsu             Hold

Plantation Sector : News flow for week 28 – 31 August   Neutral

 

STOCK ON RADAR

Sunway Construction Group, TRC Synergy, Malaysia Steel Works, Systech

 

NEWS HIGHLIGHTS

Fajarbaru : Wants a slice of action in current construction boom

HeveaBoard : Faces challenges to sustain growth

Oil & Gas Sector: Sarawak oil play

 

 

 

No comments:

Post a Comment

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

Related Posts with Thumbnails