Wednesday, May 30, 2018

FW: AmBank Research - Malayan Banking: Upticks in impaired domestic consumer, business loans HOLD, 30 May 2018

 

 

STOCK FOCUS OF THE DAY

Malayan Banking: Upticks in impaired domestic consumer, business loans            HOLD

 

We maintain our HOLD call on Malayan Banking (Maybank) with an unchanged FV of RM11.0/share. This is based on an ROE of 11.4%, leading to a FY19 P/BV of 1.5x. No changes to our estimates. 1QFY18 core earnings of RM1.87bil (-3.9%QoQ, +9.9%YoY) were within expectations, accounting for 22.9% of our and 22.8% of consensus estimates respectively.

 

On a year-on year basis, the group’s earnings growth was supported by higher Islamic banking income and non-interest income (NOII), largely due to higher net earned insurance premiums (from life and family insurance) and lower provisions for loan losses, partially offset by higher taxes. The group’s capital ratios remained healthy with a fully-loaded CET1 and total capital ratio of 13.73% and 18.48% respectively as at end-1QFY18.

 

Others :

Eonmetall Group: A soft patch in 1QFY18, but stronger prospects ahead                BUY

CB Industrial: Affected by lower order book                                                                        HOLD

Felda Global: In the red in 1QFY18                                                                                            HOLD

Gamuda: KL-Singapore HSR shelved                                                                                        HOLD

MBSB: Earnings boosted by a write back in provisions for loan impairment            HOLD

 

 

 

ECONOMIC HIGHLIGHTS

Malaysia: Right decision to scrap HSR

Japan: No change to BoJ’s policy

 

 

NEWS HIGHLIGHTS

Property Sector: Better sentiment seen for industrial property

CCK: Plans more broiler farms in Sabah, Sarawak

Tobacco Industry: JTI’s Shah Alam plant sold

Power Sector: Siemens Malaysia eyes power generation work

 

 

 

DISCLAIMER:

The information and opinions in this report are 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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