KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD [] (MBSB) shares advanced on Wednesday, March 30 and was up 26 sen to RM2.30 at 11.30am.
AmResearch said MBSB, an exempt finance company involved mainly in lending activities, similar to finance companies, was in a a sweet spot to benefit from strong growth in the niche personal financing market.
'This is due to recent changes in the industry, whereby selected cooperatives which had been involved in providing personal financing to government civil servants are no longer allowed to carry on these activities,' it said on March 30.
AmResearch has initiated coverage on MBSB with a Buy rating and a fair value of RM3 cum rights (or RM2.20 ex-rights) basis.
It said this was based on its adjusted (for rights) FY11F ROE of 20.5% and fair P/BV of 2.6 times, adding its fair value provided an upside of 47% from the current share price.
AmResearch said MBSB, an exempt finance company involved mainly in lending activities, similar to finance companies, was in a a sweet spot to benefit from strong growth in the niche personal financing market.
'This is due to recent changes in the industry, whereby selected cooperatives which had been involved in providing personal financing to government civil servants are no longer allowed to carry on these activities,' it said on March 30.
AmResearch has initiated coverage on MBSB with a Buy rating and a fair value of RM3 cum rights (or RM2.20 ex-rights) basis.
It said this was based on its adjusted (for rights) FY11F ROE of 20.5% and fair P/BV of 2.6 times, adding its fair value provided an upside of 47% from the current share price.
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