Public Bank / Teh Hong Piow

[winston]

Not vested

Malaysian bank's lavish party sparks ridicule

KUALA LUMPUR: An extravagant party by a privately-owned Malaysian bank for its ageing founder has sparked ridicule online, with some comparing it to the type of event held in North Korea to praise leader Kim Jong Il.

A videoclip of the July 23 event to mark Public Bank's 45th anniversary and honour chairman Teh Hong Piow, 81, began circulating online this week.

It shows hundreds of bank staff, singers and dancers waving small flags in a banquet hall to welcome Tan Sri Teh.

Ranked Malaysia's third-wealthiest person by Forbes magazine, he arrived waving from a pick-up truck flanked by motorcycle outriders, as the crowd sang: 'Man of honour, a living legend. Let's rise up now and sing out loud.'

Performers later stretched out their arms, as if worshipping him.

The extravaganza was savaged by Malaysian users of Twitter and bloggers.

'Malaysia's latest religious cult: Public Bank. Kim Jong Il would be jealous,' tweeted MP Khairy Jamaluddin, youth wing chief of the United Malays National Organisation, the country's dominant political party.

One blogger said Mr Teh should have used bank assets to help the community instead: 'Big sigh, what a waste. Surely, he would go down in history better if he would dish out all that money for some decent community work instead," the blogger said.

Teh founded the publicly-listed bank -- which is now the country's third-largest in terms of assets -- in 1966 and has received numerous awards over the years as one of Malaysia's top bankers.

Forbes has estimated his personal wealth at $3 billion (S$3.6 billion).

http://news.asiaone.com/News/AsiaOne%2B ... 95367.html

[winston]

not vested

Public Bank (Share Price: RM19.58; TP: RM23.00)

Despite Bank Negara’s tightening measures, the group’s consumer loan growth did not weaken.

Its recent share price weakness following the entitlement date for its rights issue presents an opportunity to accumulate on weakness.

Given its strong CASA franchise and high proportion of variable rate loan, the group will also benefit from any OPR hike by BNM.

Source: DBS

[winston]

not vested

RHB Research sees Public Bank offering investors stable earnings
July 1, 2014

KUALA LUMPUR: RHB Research holds the view that Public Bank should continue to offer investors stable earnings amid softer corporate lending and capital markets, given that it is less reliant on these segments.

It said on Tuesday Public Bank’s asset quality and cost efficiency are the best in class, while the recent rights issue will place the group as one of the best capitalised banks domestically. It added all these appear priced in as it maintained Neutral with RM18.60 fair value.

“Given that Public Bank’s loan book is skewed towards the household segment while non-interest income is less reliant on capital markets, the group should continue to offer investors earnings stability, in our view.

“The main challenge we see is the continued pressure on net interest margins (NIM),” it said.

RHB Research said it was adjusting its Gordon Growth Model-derived fair value to RM18.60 from RM19.25 as the stock has gone ex-rights. Its previous FV was on a cum-rights basis and reflected the rights issue on a proforma basis.

“In our view, the group offers investors good earnings predictability, sound asset quality and cost efficiency. The rights issue may also help lift the capital issue overhang and place the group as one of the best capitalised banks domestically.

That said, we think the stock’s valuations already reflect much of the positives, and hence retain our Neutral call,” it said.

Source: The Star

[winston]

TEH HONG PIOW
Flagship: Public Bank Bhd (PBB)
Net worth: RM20bil

THE 87-year-old banker is hardly seen in public these days. However, the returns that the bank gives its shareholders resonate well among the investing public.

Assuming someone had purchased a PBB share at the end of 2010, which was trading at RM13.02, and the person had subscribed for a one-for-10 rights issue at an outlay of RM14,400, the returns in share price appreciation alone after five years would have amounted to about 41.5%.

In addition, the shareholder would have received RM2,710 in dividends over the period.

Teh, who is the chairman of the bank, does not hide the fact that it thrives on its prudent style of lending and consistent returns to shareholders.

In his annual message to shareholders, he does not fail to reiterate how much they have gained by being his long-term shareholders.

For instance, in the 2015 annual report, Teh stated that if a shareholder had bought 1,000 PBB shares when the bank was listed in 1967 and subscribed for all the rights issues and not sold any of the shares, they would have held 148,938 shares by the end of 2015,

At today’s price of RM20 per share, it would be worth almost RM3mil while the total outlay would have been RM235,612, including the amount forked out for the subscription of rights.

In addition, the shareholder would have received dividends of RM1.08mil since 1967.

The healthy returns to shareholders are one reason why PBB has established itself as the most expensive financial institution in the region, trading at a price-to-book ratio of 2.3 times, way above the industry average of one times book value.

Its cost-to-income ratio is about 31%, much lower than the industry average that is closer to 48%, while the bad loans are about 0.6% of its total portfolio.

No longer handling the day-to-day operations, Teh, who owns 23.4% in PBB that would fetch a price tag of more than RM20bil, does not have a clear successor.

Nevertheless, those familiar with the bank say that the system in place in the bank is robust to ensure that the standards of prudence remain and see to it that the bank is able to generate hefty returns, even in bad times.

Source: The Star

[winston]

not vested

On stock selection, we are turning bullish on PBBANK (RM4.10; HLIB Research-BUY- TP RM4.50) given price weakness over the past 2 months.

Also, its strong asset quality may attract investors to take shelter in a more defensive banking stock, especially with MCO 3.0 uncertainties.

Technically, the better-than-expected 1Q21 results and grossly oversold indicators may cushion further downside, with key supports situated at RM4.00-3.90-3.85.

A decisive push above the RM4.20 (50D SMA) resistance will enhance upward momentum towards RM4.38-4.50 levels.

Source: HLIB

[winston]

not vested

Founder's demise would trigger a major change in shareholding structure of Public Bank, says CGS-CIMB

by Surin Murugiah

CGS-CIMB said the late Teh was the largest shareholder of Public Bank with a 23.41% stake (or 4.54 billion shares) as at March 14, 2022.

“Based on the closing price of RM4.40 for PBB on Dec 12, Teh’s stake carries a total value of RM20 billion.

According to Section 92 of Financial Services Act, individuals are prohibited from owning more than 10% stake in a financial institution unless they already held the stake before June 30, 2013.

“As such, for the individual(s) who will inherit Teh’s stake in Public Bank, he/she (they) cannot hold more than 10% stake per person”.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/647939

[behappyalways]

失”祖父条款”庇护 郑鸿标200亿股权花落谁家? | 八点最热报 15/12/2022
https://m.youtube.com/watch?v=2KTa4A_Rhsw

[winston]

not vested

Robust FY23F NP growth despite lower NIM

We are lowering our NP forecasts by 6.8% for FY23F and 2.2% for FY24-25F as we cut our projected net interest income by a similar magnitude.

Reiterate Add as our projected NP growth remains robust at 13.4% in FY23F despite the earnings cut.

On revised estimates, valuations remain attractive at FY24F P/E of 10.1x while FY23F dividend yield is decent at 4.5%

TP: RM 5.10

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... D40134CF36

[winston]

not vested

1Q23 within expectations
HOLD maintained

Public Bank’s 1Q23 results were within expectations.

NIM compressed much more than anticipated, but this was offset in part by much lower
credit costs.

We trim our FY23-25E net profit forecasts by 1-3%, largely on the back of lower NIM expectations.

Correspondingly, we lower our TP to MYR4.30 from MYR4.60m on a lower FY23 PBV target of 1.7x (ROE: 13%) from 1.8x previously. HOLD maintained.

TP: RM 4.30

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/320512.pdf

[winston]

not vested

Public Bank (PBK MK)
1Q23: Provision Writebacks Buffer NIM Compression

Public Bank’s 1Q23 earnings are in line as weaker-than-expected NIM was offset by provision writebacks.

On a yoy comparison, the group was still able to register a commendable 5% growth in pre-provision operating profit on the back of stable loans growth and cost control.

Maintain BUY and target price of RM5.10 (1.80x 2023F P/B, 12.8% ROE).

Valuations have declined to a highly attractive 1.5SD below its historical mean while hefty provision buffers provide potential credit cost tailwinds.

TP: RM 5.10

Source: UOBKH

https://research.uobkayhian.com/content ... cd408f8bfc