Tuesday, August 23, 2011

CIMB Research retains Outperform on Maybank

KUALA LUMPUR: CIMB Equities Research is retaining its MALAYAN BANKING BHD [] (Maybank) as an Outperform and its top pick in the banking sector.

It said on Tuesday, Aug 23 Maybank's FY6/11 results were in line at 99%-100% of its and consensus estimates though its 60 sen dividend per share (32 sen final) was slightly above its 57.5 sen projection.

'We adjust our numbers for the change in financial year-end from Jun to Dec but maintain our target price of RM11.20, which is based on a 10% premium over its DDM value,' it said.

CIMB Research said the main positive from the results is the spectacular loan growth of 22.5%, which reflects market share gains in Malaysia and Singapore.

'Maybank remains an OUTPERFORM and our top pick in the sector. The stock may be catalysed by (1) ETP catalysts, (2) swift expansion in Indonesia, (3) faster-than-expected loan growth, and (4) pick-up in investment

banking income. Maybank also boasts a dividend yield of 7%+, the highest in the sector,' it said.

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