by winston » Wed Mar 07, 2018 9:05 am
not vested
Trading Buy: RHBBANK-1066
(Last price: RM5.39, Potential upside +8.9%)
Company Profile
• RHBBANK (41% owned by EPF) is the 4th largest fully integrated financial services group in Malaysia. Its core businesses are streamlined into seven main business pillars, namely Group Retail Banking, Group Business & Transaction Banking, Group Wholesale Banking, Singapore Business Operations, Group Shariah Business, Group International Business and Group Insurance.
Trading Catalyst
• HLIB has a BUY rating with TP of RM6.00, or 11.3% upside.
• It remains a top pick for the sector, premised on (1) attractive valuations, currently at 2018E P/E of 9.7x (22% lower against industry 12.4x) and P/BV of 0.93x (32% discount against peers 1.37x)
• Expected to benefit from its ongoing transformation programme and the end of impairment, which reinforce our projected FY17-19 EPS CAGR of 14%.
• Upside bias towards RM5.61-5.87 amid bullish double bottom pattern.
Technical View
• Resistance: RM5.51 / RM5.61 / RM5.87
• Support: RM5.29 / RM5.23
• Cut loss: RM5.14
Key Financial Stats
• Trading at 0.93x P/B, supported by a strong FY17-19 EPS CAGR of 14% and decent DY of 3.2% for FY18-19.
Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"