[Maybank Kim Eng] Today's Research - Malaysia

12 Oct 2015, Monday

g Company Research - BIMB Holdings: FY15 targets intact | Desmond Ch'ng g Sector Research - Malaysia Construction: HK roadshow feedback | Li Shin Chai g Macro Research - Malaysia: Budget 2016 Preview - Thoughts on Budget 2016… | Suhaimi Ilias - Regional: Technicals - Autumn volatility subsides further | Lee Cheng Hooi

MY: BIMB Holdings (BIMB MK) Share Price: MYR4.13 Target Price: MYR4.80 Recommendation: Buy Desmond Ch'ng (603) 2297 8680 desmond.chng@maybank-ib.com Company Update: FY15 targets intact FYE Dec (MYR m) FY13A FY14A FY15E FY16E Operating income 2,036.6 2,122.5 2,234.4 2,344.0 Pre-provision profit 808.4 871.7 906.8 957.1 Core net profit 279.3 532.3 547.6 572.2 Core EPS (MYR) 0.26 0.36 0.37 0.38 Core EPS growth (%) 9.3 37.9 2.9 4.5 Net DPS (MYR) 0.12 0.15 0.14 0.14 Core P/E (x) 16.0 11.6 11.3 10.8 P/BV (x) 2.2 2.1 1.8 1.6 Net dividend yield (%) 2.9 3.6 3.4 3.4 Book value (MYR) 1.88 1.97 2.31 2.55 ROAE (%) 11.4 18.5 17.1 15.8 ROAA (%) 0.6 1.0 1.0 0.9 §  Bank Islam’s FY15 targets intact - financing growth 14-15%, profit spread >2.75%, FDR 80%, PBZT to sustain FY14 levels. §  Our FY15 forecast intact, trimming FY16/17 earnings by 1%/ 3% to factor in higher profit spread compression. §  BUY maintained with an unchanged SOP-TP of MYR4.80. MY: Malaysia Construction Recommendation: Overweight Li Shin Chai (603) 2297 8684 lishin.c@maybank-ib.com Sector Note: HK roadshow feedback §  Foreign interest in construction sector is stronger but there were concerns on the implementation timeline. §  Infrastructure jobs pipeline remains solid and we see low delay risk for job starts especially for KVMRT 2 and KVLRT 3. §  Reiterate OVERWEIGHT with Gamuda as Top Pick. MY: Budget 2016 Preview Suhaimi Ilias (603) 2297 8682 suhaimi_ilias@maybank-ib.com Zamros Dzulkafli (603) 2082 6818 zamros.d@maybank-ib.com Economics Research: Thoughts on Budget 2016… §  Budget 2016 will be tabled on 23 Oct 2015 §  Government to stay committed to fiscal consolidation §  At the same time, kick start 11th Malaysia Plan (2016-2020) RN: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: Autumn volatility subsides further §  FBM KLCI – A stronger recovery on the index. §  CPO Futures – A downward reversal from the MYR2,460 high. §  DJIA – Autumn volatility subsides further. §  LUXCHEM – A very strong triple time frame uptrend stock.