STOCK FOCUS OF THE DAY
Public Bank: Minimal impact on capital ratios for MFRS 9 BUY
We maintain our BUY call on Public Bank Bhd (PBB) with an unchanged fair value of RM24.30/share. This is based on a target P/BV ratio of 2.4x, supported by a FY18 ROE of 14.5%. We tweaked our FY18/FY19 net profit by 1.4%/-2.2% after fine tuning our loan growth and credit cost assumptions.
The group reported a core net profit of RM1.49bil (+5.7%QoQ, +0.2%YoY) in 4QFY17. On QoQ basis, the improved earnings was supported by modest growth in total income, lower OPEX and provisions for loan losses.
It recorded a net profit of RM5.47bil (+5.1%YoY) for 12MFY17 which came in within expectations, accounting for 104.0% and 103.3% of our and consensus estimates respectively. ROE for FY17 was 15.3% vs. 15.9% in FY16.
Others :
Axiata Group: Higher ROCE guidance with huge non-cash impairment BUY
Eonmetall Group: FY17 net profit still grows 35% YoY, despite a soft 4Q BUY
Kian Joo Factory: Ability to pass on cost increase bodes well for 2018 HOLD
MBM Resources: Rocky road still HOLD
Sime Darby (Auto): Decent 1H18 growth HOLD
Sime Darby Plantation: Bidding for Ruchi Soya HOLD
Unisem: Quieting down for two quarters HOLD
Media Prima: Another round of kitchen sinking SELL
STOCKS ON RADAR
George Kent, SIG Gasses, Pestech International, Priceworth International
ECONOMIC HIGHLIGHT
Euro: Premature for ECB to revisit the monetary policy
NEWS HIGHLIGHTS
AirAsia: Former Pos Malaysia boss joins logistics arm
Kossan Rubber Industries: New plant to underpin growth in 2018
Muhibbah Engineering: Wins RM149mil job in Qatar
DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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