KUALA LUMPUR (Feb 29): CIMB Equities Research said RHB CAPITAL BHD []’s FY11 net profit met its expectations as it accounted for 97% of its forecast and consensus.
It said on Wednesday that however, net profit growth at only 5.7% was slow, impacted by a margin squeeze that offset the positive effects of swift loan growth.
“We continue to peg the stock to our DDM value. Despite the undemanding valuation, we continue to rate RHB Capital a Neutral on concerns over slowing loan growth and suppressed net interest margins,” it said.
CIMB Research had a target price of RM7.50 for the stock.
It said on Wednesday that however, net profit growth at only 5.7% was slow, impacted by a margin squeeze that offset the positive effects of swift loan growth.
“We continue to peg the stock to our DDM value. Despite the undemanding valuation, we continue to rate RHB Capital a Neutral on concerns over slowing loan growth and suppressed net interest margins,” it said.
CIMB Research had a target price of RM7.50 for the stock.
