MAYBANK Analysis:-

Excel – http://1drv.ms/SXde1f

My View:-

- Fair values:
  – 5Y DCF: 10.08 – 11.74 (MOS: 1% – 15%)
  – EY%: buy below 13.77, sell above 16.75 (MOS: 40.43%)
  – EY% valuation may be too optimistic, but MAYBANK is undervalued if based on DCF valuation.
- MAYBANK seems to be fairly optimistic over FY14 outlook with tall targets of 13% growth in both loans and deposits. Besides, they also maintain its ROE target at 15%. In my opinion, after studied the risks and growth drivers, this is a realistic target.
- I will accumulate MAYBANK a bit without increasing my average price too much.

Latest Financial – Q1 2014 Financial Report (29 May 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1638761

At the time of writing, I owned shares of MAYBANK.