Tuesday, 14 February 2012

RHB Research keeps Maybank FV at RM9.47, Outperform

KUALA LUMPUR (Feb 14): RHB Research Institute is maintaining its fair value of RM9.47 and Outperform call on MALAYAN BANKING BHD [].

It said on Tuesday Maybank will be announcing its results (for the six months financial period to December 2011) during the week beginning Feb 20.

“Our net profit forecast of RM2.56 billion (+19.1% on-year) for the six-month period implies that 2Q net profit would be down marginally on-quarter (-0.7% on-quarter) but up by around 13.5% on-year.

“We expect lower net profit on-quarter mainly due to higher loan impairment allowances (+200% on-quarter) on expectations of lower recoveries and additional provisioning to beef up coverage levels. That said, we do note that our annualised credit cost assumption for the 6-month period stands at 30bps, slightly more conservative than the 20-25bps mentioned by management previously,” it said.

RHB Research said it expects Maybank to declare a final gross DPS of 27.5 sen (2QFY06/11: 32 sen, gross), based on a net payout ratio of about 60%.

However, Maybank’s recent payout track record with script dividends has been in excess of 70%. If repeated again, this would translate to a final gross DPS of at least 32 sen.

“Fair value of RM9.47 and Outperform call maintained. Note that we upgraded our call on the stock in yesterday’s Banking Sector Update,” it said.

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