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COMMENTS ON MALAYAN BANK BERHAD (1155) - louisesinvesting

Tan KW
Publish date: Thu, 05 Dec 2019, 02:02 PM
Tan KW
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FIGURE 1: MALAYAN BANK BERHAD LAST 5 YEARS SHARE PRICE TREND
 
**analysis based on 2018 annual report.
1.       GENERAL INTRO: This counter core business is on various banking services. Maybank is the largest bank in Malaysia.
 
2.       NOTABLE POINTS:
a.       22 million customers worldwide
b.      adopts a dividend policy with a Dividend Payout Ratio of between 40% to 60% of full year earnings attributable to shareholders. In last few years pay up to 78% of earnings to shareholders as dividend.
c.       Maybank is a TOP 500 Most Valuable Gloal Brand, first Malaysian bank to break into the Global 500 Brands list by Brand Finances, with a brand value of USD 4.2 billion
 
3.       IS THIS COUNTER A STRONG GROWTH STOCK? 
a.       REVENUE RANGE (million): ~47320 million in 2018 annual report, this is a high revenue company.
b.      SHARE PRICE: share price in last few years is steady, range from RM7.60 to ~RM11.00.
c.       EARNING PER SHARE (EPS): earning per share in last 5 years were fluctuating, EPS were ranging from 67.2 to 74.2 sen per share.
d.      FUTURE POTENTIAL/PROSPECTS: very dependable and reliable counter, share price will not fluctuate too much.
e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 291 million, around 0.02% of total assets.
 
4.       IS THIS A STRONG DIVIDEND STOCK?     
a.       DIVIDEND YIELD: in 2018 report, Maybank declared a total dividend payout of 57 sen per share, amounts to dividend yield of 6.73 % based on current share price.
b.      CONSISTENCY: very consistent dividend payout, last five years (2014-2018) dividends declared range from 52 to 57 sen per share.
 
5.       OTHER INDICATORS:
a.       CASH FLOW: cash flow is positive, around RM 57058 million, equivalent to RM 5.15 per share
b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is well supported by institutional investors, there are 29 institutional investors at top 30 major shareholders list, including EPF (12.62%), Skim Amanah Saham Bumiputera (35.05%), Permodalan Nasional Berhad (7.08%), Kumpulan Wang Persaraan, FELDA and few insurance companies and investment funds.
 
Disclaimer: The content of the blog posts are for sharing purpose only. Readers are encouraged to carry out further research and analysis as well as follow up latest update information before making any investment decisions.
 
 
http://louisesinvesting.blogspot.com/2019/10/comments-on-malayan-bank-berhad-1155.html

 

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RainT

MAYBANK

Cash flow is positive: very funny , MAYBANK is in banking business , sure the cash flow will positive (operating cash low positive)

CAPEX : MAYBANK is doing banking business or it is a service business, to see the capex is not so useful and relevant.If a manufacturing company then capex is very important for determine growth.

2019-12-06 12:33

ahbah

Maybank rebound coming anytime soon ?

2019-12-06 15:39

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