Malaysia Market Watch Today 1st August 2012
KUALA LUMPUR – MIDF Research has maintained its Neutral rating on the banking sector.
In a note Wednesday, the research house said it continued to like Public Bank (TP: RM16.10) for its stable performance and resilient customer base.
“We also have a Buy call on Maybank (TP: RM9.55) for its strong earnings momentum with expected improved contribution from the IB segment benefiting from key capital market deals locally and abroad.
“For the mid-cap bank, we maintain our Buy rating on RHB Cap (TP: RM8.50) which still has an undemanding valuation coupled with an expectation of improved international operations’ contribution to its bottom line after completing the merger with OSK IB,” it said.
MIDF Research said that for the smaller-cap banking stocks, it had Buy call on Affin Holdings Bhd (TP: 4.10) which was also undemanding in valuation terms compared to peers.
“For Affin, we have rolled over our valuation period to FY13, hence raising our TP to RM4.10 pegging the stock to a PBV of 1.0x, up from our previous TP of RM3.50.
“We remain Neutral on CIMB (TP: RM7.70), AMMB (TP: RM6.60), Hong Leong Bank (TP: RM12.80) and AFG (TP: RM4.10),” it said. -By theedgemalaysia.com | The Edge Malaysia