STOCK FOCUS OF THE DAY
CIMB Group : A surprising announcement on leadership
transition HOLD
We maintain our HOLD on CIMB Group Holdings Bhd (CIMB) with
an unchanged fair value of RM7.30/share. This is based on an FY14F ROE of 12.7%
and an unchanged fair P/BV of 1.7x. CIMB has announced that Tan Sri Md Nor
Yusof, chairman of CIMB Group, will retire from the board of directors and join
the group's International Advisory Panel (IAP). Dato’ Sri Nazir Razak will take
over as chairman of CIMB Group and relinquish his position as group CEO. Nazir
will also chair an executive committee of the board (to be established), that
will focus on key strategic matters and enhance the board’s oversight
functions. The company said that the changes to the leadership structure will
institutionalise and strengthen the management of the group. We expect the
changes at the top to have taken the market by surprise. That said, we
believe that it is positive that there is some continuity at the top management
level, given that the outgoing CEO will be staying as chairman of the group,
CIMB Niaga, and CIMB Investment Bank.
Maintain HOLD.
Others :
IOI Corporation : Boosting replanting
efforts HOLD
Hartalega Holdings : Betting on its NGC
HOLD
NEWS HIGHLIGHTS
CIMB Group Holdings : Nazir Razak will become chairman of
CIMB Group in a leadership transition
Malaysian Airline System : Khazanah: Privatisation of MAS
mere speculation; airline’s shares up on buyout news
AirAsia : AirAsia India aims to break even in 1st year
Oil and Gas Sector : Shell, Petronas expand Baram Delta
terms to include gas rights
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