CIMB

[winston]

not vested

Bullish Tracker - 1023 CIMB (TRADING BUY)
Pending a technical rebound amid value and yield recovery play

CIMB has retraced 16.8% from its 5-year high of RM8.95 to RM7.45, lifting its valuation appeal.

The stock now trades at a forward FY26 P/E of 9.6x, well below its pre-COVID 5-year mean of 13.6x, underpinned by a decent FY25–27 earnings CAGR of 5.3%.

Relative to its peers, MAYBANK, RHBBANK and PBBANK, CIMB remains the most undemanding large-cap bank under our coverage, trading at 9.6x FY26 P/E (vs. peers’ 10.5–12.3x), 1.1x P/B (vs peers’ 1.0–1.4x), while offering an attractive FY26 dividend yield of 6.8% (vs peers’ 5.1–5.9%).

This combination of discounted valuations, resilient earnings growth, and superior yield presents a compelling accumulation opportunity, for a potential technical rebound towards RM7.79 (38.2% FR), RM8.01 (50% FR), and RM8.23 (61.8% FR).

Major supports are seen at RM7.20 (6-months low), RM7.07 (8-months low), and RM6.90. Stop loss at RM7.05.

Source: HLIB

[winston]

not vested

1023 CIMB (BUY)
Steady as it goes

CIMB maintains a defensive posture with stable asset quality and potential reallocating the unutilised overlays as legacy provisions expire.

Asset risks are contained via prior de-risking in Indonesia and Thailand.

NIM remains resilient, supported by disciplined deposit pricing and affluent-driven liquidity.

Healthy wealth momentum and controlled credit costs underpin earnings stability amid macroeconomic headwinds.

Post-FY25 housekeeping, we recalibrate our FY26/27f earnings forecasts downwards by 0.9%/1.2% and introduce FY28f estimates.

Maintain BUY call with a lower GGM-TP of RM9.80.

Source: HLIB

[winston]

not vested

1023 CIMB (BUY)
Steady quarter

CIMB Niaga’s 1Q26 net profit of IDR1.77tn (+9.8% QoQ, -2.2% YoY) met expectation, accounting for c.25% of our full-year estimates.

This was supported by strong NOII momentum offsetting NII weakness, despite margin compression.

On a YoY basis, profit dipped due to higher opex, provisions, and tax.

Loan and deposit growth moderated, though asset quality remained resilient.

Looking ahead, management stays cautiously optimistic, banking on fee income growth and disciplined funding to cushion margin pressure while guiding for a gradual recovery in loan growth.

No change to our earnings forecasts, we reiterate our BUY call with unchanged GGM-TP of RM9.80.

Source: HLIB