All con con.

FORECAST

We are maintaining our FY17 and FY18 forecast.
VALUATION AND RECOMMENDATION

We are pleased to see the Group's operation continues to improve, especially with the strong growth in NII. While asset quality remains our concern, it is allayed by the fact that we believe that it is well contained. We believe that with the operation improving further in Indonesia, there is still some potential upside to the stock. As such, we are maintaining our BUY call with unchanged TP of RM10.30, based on PB multiple of 1.4x. Although, the expected total returns is slightly below our threshold of +15%, we are making an exception as in our opinion, the Group's earnings recovery have not been fully priced in. Additionally, a dividend yield of +5.8% should limit any potential downside.

Source: MIDF Research - 5 Sept 2017

FORECAST
We make no change to our FY17 and FY18 forecast.

VALUATION AND RECOMMENDATION
We continue to be encouraged by the Group’s future prospect. We believe that the transformation program continues to have an impact as evident by the NOII and mortgage loans growth. As previously stated, we like the fact that the Group is focusing on mortgage for affordable housing segment given the high demand for this property segment. Impairments and provisions increased in the quarter but pending any further information, we opine that this could be deliberate. However, we maintain our view that the Group is building its niche and we opine that this will ensure future profitability. Therefore, we maintain our BUY call for the stock, with an unchanged TP of RM3.30 based on pegging our FY18 BVPS forecast to PBV of 0.7x.

Source: MIDF Research - 5 Sept 2017

http://klse.i3investor.com/blogs/midfresearch/131486.jsp

No problem.

So you wanna buy at 3.90.

Specter made tonnes of money and went honeymoon already lah!

ANZ wanted a good price, 2 times NTA at least before selling. What so hurry? Do you think it is easy to start a bank or get a bank licence?

For so many years ANZ still not selling its portion, why you said it desperate?

Good!

ha!

KUALA LUMPUR: Maybank Investment Research has maintained its Buy call on CIMB Group Holdings Bhd as it forecasts robusts earnings growth of 27%/16% in FY17/18E with an expected ROAE expansion to 10.6% in FY18 from 7.9% in FY16.

Its target price remains unchanged at RM7.50 on a 2018 price-book value of 1.3x.

CIMB's earnings in the second quarter ended July 30, 2017, was up 26% year-on year(y-o-y) and took first half profit to RM2.16bil, accounting to 49% of Maybank Investment Research's and consensus full-year forecast.

Positives for the quarter include stable net interest margin (-1bp quarter-on-quarter) and ongoing cost control/positive JAWS. On the flip side, loan growth remains subdued, NOII contracted q-o-q in Q2 while credit costs were higher.

"Management’s targeted 9.5% ROE for FY17 does appear to be achievable and our forecast is a tad higher at 9.6% for the year. Into FY18, management targets an ROE of 10.5% to 11% and our forecast of 10.6% is at the lower end of this range.

"Separately, management has announced a first interim dividend per share of 13 sen vs 8 sen in H1FY16, this being a dividend payout ratio (DPR) of 52%. We raise our FY17 DPS forecast to 26 sen from 25 sen, to reflect a higher DPR of 52% versus 50% previously. Forward yields of >3.9
Read more at http://www.thestar.com.my/business/business-news/2017/08/29/maybank-investment-maintains-buy-on-cimb-on-robust-earnings/#pf3AiEsR2r7PTuqW.99

KUALA LUMPUR: The selldown in AMMB Holdings Bhd shares following the scrapped merger talks with RHB Bank Bhd was unjustified, as the bank is still fundamentally sound, according to analysts.

Since the announcement of the failed merger, AMMB has fallen 5% from its closing price of RM4.70 last Tuesday. Prior to that, the banking stock had already been on the decline, retreating from a two-year closing high of RM5.62 in May. The stock closed at RM4.43 yesterday.

Following the group’s result briefing last week, Hong Leong Investment Bank Bhd (HLIB) analyst Khairul Azizi Kairudin said in a note yesterday that it is business as usual for AMMB, adding that the group posted commendable results for the first quarter ended June 30, 2017 (1QFY18).

“Despite the merger discussions with RHB, AMMB delivered commendable 1QFY18 results amid a quiet quarter due to Ramadan and Hari Raya.

AMMB’s quarterly financial figures came in in line with HLIB’s consensus expectations with earnings growing 1.6% year-on-year (y-o-y) and 31% quarter-on-quarter, he said.

Khairul said the management had refuted the claims that the merger was scrapped due to contingent liabilities at the recent results briefing. Instead, it was attributed to the two parties being unable to reach a conclusion over various terms, including pricing and synergy.

Following the failed merger, Khairul said the bank will be pursuing its Top 4 initiatives — aimed at growing its four segments, namely wholesale banking, business banking, retail banking and general insurance — organically.

“We feel that AMMB is showing progress towards its Top 4 aspiration by 2020,” Khairul wrote in the report.

The research house maintained its “buy” call on the stock with a target price of RM5.20, adding that AMMB is currently trading at a steep discount of 0.78 times its book value.

Similarly, Affin Hwang Investment Bank Bhd analyst Tan Ei Leen said the group is still operationally sound and has upgraded AMMB to “buy” from “hold”.

“The recent selldown in AMMB’s stock was unjustified in our view, subsequent to the aborted merger plan with RHB [Bank], while there were concerns about huge contingent liabilities in the group.

“AMMB’s management gave assurance that these were due in part to the ordinary course of business and not a major concern,” she said.

Meanwhile, MIDF Amanah Investment Bank Bhd said asset quality remains a concern as the gross impaired loan (GIL) ratio remains elevated at 1.88%, up 19 basis points (bps) y-o-y.

“This came from [the] wholesale banking segment where [the] GIL ratio was 49bps higher at 2.39% as there were impairments on a few accounts, particularly from a property developer,” said the research house.

Management expects 2H17 to be a modest reversal of the growth trends seen over 1H17 i.e. acceleration in loan growth, led by Indonesia (slow start to the year) and also recovery in Malaysian corporate loan growth, whilst net income margin (NIM) is expected to moderate - re the latter, NIM weakness was flagged for Malaysia (5-6bps compression) whilst Indonesia is also to see some attrition following a strong 1H uptrend. Group net credit cost has been maintained at 60-65bps, with incremental improvement expected to be led by the ex-Malaysia operations as regional economies continue to show recovery.
With the Bank of Yingkou stake sale and China Galaxy jv on track to be completed by end-2017, operating ratios can be expected to continue their improving trend into 2018, underpinning MQ Research’s expectations of further improvement in cost income ratio (CIR) (MQ: 50.6%), net credit cost (MQ: 55bps ex-MFRS 9 adjustment) and ROE (MQ: 10.3% vs. CIMB target of 10.5%-11.0%).
Maintain Outperform. CIMB is MQ Research’s top pick in the Malaysian banks sector.
Source: Macquarie Research - 29 Aug 2017

CIMB, the Top Pick in Malaysian Banks Sector
Author: kltrader | Publish date: Tue, 29 Aug 2017, 09:57 AM

CIMB announced their 2QFY17 financial results yesterday, reporting a 26% increase in their net earnings to RM1.1 bil, while revenue rose 13.8% to RM8.6 bil. According to CIMB Group CEO, Tengku Zafrul, the improved quarter results are testament to the group’s continuous focus on building sustainable growth, maintaining margins, managing cost and optimizing capital (TheStar, 28 Aug).

Macquarie Equities Research (MQ Research) wrote a report on CIMB, analyzing the results in detail. MQ Research considers CIMB their top pick in the Malaysian banks sector and maintains an “Outperform” rating.

Event
CIMB reported 2QFY17 net earnings of RM1.1 bil. (+26% y-y, -6.6% q-q), taking 1HFY17 net earnings to RM2.28 bil. (+35% y-y) which is 51% of consensus FY17 net earnings forecast of RM4.51 bil. and 49% of Macquarie FY17 net earnings forecast of RM4.66 bil. Return on equity (ROE) eased slightly q-q, to 9.4% (1Q: 10.3%, highest since FY14) and is at 9.9% for 1H17.
Q-q momentum was broadly resilient, with both operating income and operating expenses flat (i.e. neutral jaws), whilst an increase in loan loss provisioning which resulted in profit before tax (PBT) declining 11% q-q was mitigated by tax write back of RM43 mil. stemming from overprovision in prior years (i.e. effective tax rate fell from 25% in 1Q, to 21%). However, on both a y-y and a 1H7 vs. 1H16 basis, CIMB delivered positive jaws as operating income growth outpaced operating expenses.
Non-Malaysia PBT contribution share to the group rose to 34% in 1H17 (1H16: 25%), principally due to the substantially improved PBT from CIMB Niaga in Indonesia (+89% y-y, to RM625 mil. which is 20% of group PBT and back to a level that is in line with its 19% share of group loans). The smaller operations of Singapore (+62% y-y, to RM214 mil.) and Thailand (+80% y-y, to RM171 mil.) also delivered on expectations of earnings recovery after a depressed 2016.
An interim dividend of 13 sen (52% payout; this is the mid-range of the group's 40%-60% targeted dividend payout range) was declared - this is substantially higher than the 1HFY16 interim dividend of 8 sen (41% payout) and reflects significantly improved profitability and CET 1 ratio (+40bps vs. 1Q, to a record 11.9%).
Impact
Group 1H17 loan growth of 8.2% (5.5% at constant currency) was broad-based, with mortgages (+12.3%) and enterprise (+12.3%) key drivers, even as auto loans contracted modestly (-1.5%). On a q-q basis, group loans contracted slightly (-0.7% vs. 1Q) due mainly to corporate repayments i.e.-8% decline in syndicated term loans. As guided by management during the pre-closed period briefing earlier this month, Indonesia loan growth lagged (+2.8% vs. 1H16) but Malaysia was robust at 10%, which is almost double the rate of growth for the sector. Thai and Singapore loan growth was relatively flat.
Net income margin (NIM) remained resilient, relatively flat at 2.71% in 2Q (vs. 2.72% in 1Q) on strong NIM traction at CIMB Niaga coupled with benign cost of funding in Malaysia. 1H17 NIM has improved 8bps vs. 1H16, with group current account, savings account (CASA) share sustained in the 35%-36% range whilst group loan-to-deposit ratio (LDR) has also maintained in a range, of 92%-94%, as deposit growth has kept pace with loans.
Non-interest income growth over 1H17 (+16% vs. 1H16) outpaced that of net interest income (+13%), underpinned by substantial improvements in trading and forex gains against the backdrop of improved market activity levels, underpinning a robust 13.9% 1H17 growth in operating income. This compares to a lower 7.8% growth in operating expenses (i.e. positive jaws) as stringent cost control saw 2Q cost-income ratio (CIR) continue to trend lower, to 52.3% (1Q: 52.6%) and on track to meet management target of a group CIR <53% for FY17 (MQFY17E: 52.9%).
Net credit cost increased q-q, from 52bps to 77.6bps, taking 1H17 credit cost to 66bps (MQFY17E: 60bps) with the bulk of the RM200 mil. increase mainly due to normalisation of provisioning run-rate for corporate banking division after writebacks in 1Q, as well as seasonal increase in delinquencies related to Hari Raya festivities and provisioning for Singapore oil & gas exposure. Re the latter, management expects the difficult environment to continue but provisioning flow-through will remain modest on a group basis (oil & gas loans is 2.5% of group book). Underlying gross non-performing loan (NPL) ratio was flat q-q, at 3.2%.
Group common equity tier (CET) 1 ratio improved 40bps q-q, to 11.9% which is now well ahead of FY17 target of >11.5%. Management expects MFRS 9 Day 1 impact to be equivalent to a modest c.50bps of CET 1; coupled with the continuation of the group's DRS (dividend reinvestment scheme) where acceptance rate is >80%, CIMB's FY17 CET 1 target looks reasonable.
Action and Recommendation

masterus, no shares don't talk cock here. Go away from all bank counters.

With this Joint Billing, Ranhill will get commission. That means its business is still growing. Also because its non-revenue water (NRW) division spearheaded by Ranhill Water Services has secured Johor Phase 5 NRW jobs in Johor AND continuation increase in volume of water consumption coupled with an increase in customer base arising from new housing and industrial developments

Ranhill is doing well. Just no dividend declared is a drawback.

14.51 mil net profit + 6.1 mil one off rationalisation and relocation cost = 20.61 mil net profit per quarter for Q2 17
compare qoq with
37.77 mil - one-off recognition of negative goodwill of RM20.1 million recognised in 2Q 2016 = 17.67 mil for Q2 16.

6.78 now. Down also can go up as long as good business and growing.

Highlights
Held briefing… We attended AMMB’s post-results briefing, and management clarified various issues in hands, including the scrapped merger.
Business as usual… Despite in merger discussion with RHB, AMMB delivered commendable 1Q18 results amid a quiet quarter due to Ramadhan and Hari Raya. To recap, AMMB posted results in line with HLIB and consensus with earnings growing by +1.6% YoY and +31.2% QoQ. However, this was due to partly lower than expected taxation rate of 19%.
Scrapped merger explained… AMMB refuted the claim that the merger was scrapped due to contingent liabilities. Management explained that both parties were unable to reach conclusion over various terms, among others pricing and synergies. Post-failed merger, AMMB will pursue organically its Top4 aspiration by 2020.
Clarification on contingent liabilities … It was reported in the news that AMMB is facing issue of contingent liabilities. AMMB explained that it is a norm for banks to incur certain contingent liabilities though banks are not expecting losses from these transactions. Relating to the above, AMMB incurred contingent liabilities from 2 products namely bank guarantee (BG) and letter of credit (LC). The group’s current contingent liabilities amounted to RM8.9bn (6.5% of total assets & 7.4% of total liabilities).
Broad-based income… Since Dato Sulaiman took the CEO seat, the primary objective is to grow four segments (namely wholesale banking, business banking, retail banking and general insurance) and optimize the income from wholesale banking. Such initiatives are picking up momentum whilst focus on key products namely cards and SME have already contributed to the NII growth in 1Q18.
Asset quality stills an issue… AMMB still reported net recoveries that lowered its credit cost. Management hinted that AMMB still could enjoy net recoveries throughout FY18 owing to 1-2 corporate accounts. Despite having a benign asset quality, management is watchful on corporate loans impairment. Exposure to the O&G and the commercial real estate sector stood at 2% and 8% of total gross loans.
Risks
Slower impact from de-risking of auto loan book and lower recoveries to impact bottom line.
Forecasts
Unchanged.
Rating
BUY (↔)


We feel that AMMB is showing progress towards its top 4 aspiration by 2020. SME loan spiked 19% on an annualized basis while further NIM recovery is in sight owing to gradual shift from fixed deposit into CASA. AMMB is currently trading at steep discount of 0.78 P/BV.
Valuation
Maintain our TP at RM5.20, TP was derived from GGM i) ROE of 8.8x ii) WACC of 8.9%. Maintain BUY.
Source: Hong Leong Investment Bank Research - 28 Aug 2017

http://klse.i3investor.com/blogs/kianweiaritcles/130907.jsp

Ya. Get more fund to pour in. Ha! Ha!

Wanna to gain, must pay for the price first. Harvest time will come as AMMB is fundamentally sound and business is progressing and improving.

Interim income distribution of 2.85 sen per unit for the financial year ending 31 December 2017 (of which 2.58 sen is taxable and 0.27 sen per unit is non-taxable in the hands of unit holders) in respect of the period from 01 January 2017 to 30 June 2017.

Certain fund blocks at 1.66, but no use, it would not be long if selling force is strong, it will break through and water down. Just my 2 cents.

Instead of 3.06 this Q, it would be 2.9 cents net profit if all warrants converted.

I find dilution will be more serious if all warrants converted in the QR.

Now depend on buying and selling forces.

That is worry part of high costing:
Posted by Beza > Aug 23, 2017 08:18 AM | Report Abuse X

Good morning, yfchong. If you hold a lot of Hevea, you may reduce it to some as its competitor evergreen is not doing well due to high cost of log (shortage) and glue. There is a higher risk as we do not know its impact on Hevea coming result. Just my 2 cents.

Exactly. No retrenchment needed.

Good morning, yfchong. If you hold a lot of Hevea, you may reduce it to some as its competitor evergreen is not doing well due to high cost of log (shortage) and glue. There is a higher risk as we do not know its impact on Hevea coming result. Just my 2 cents.

Specter, I thought you had sold most of yours weeks ago. How many left?

Hng33 is a trader. He will cut loss before t+3 if prices deteriorate. Don't worry about him.

This is the greatest charity work we can do it to KYY. Have mercy on him that he has been doing a lots of charity works. Can't we just do a little even to him?

Let us help him to buy more and trigger Mandatory Shares Buy Back so that he can go direct into BoD and do whatever he wants to.

Then you sell more to him and he buys more.

Lead by example, Calvin. Pls buy first 1 million units each and show proof to us. OK?

The finance & insurance and business services stepped expanded 5.1% and 8.5% respectively.
http://klse.i3investor.com/blogs/kianweiaritcles/130290.jsp

The finance & insurance and business services stepped expanded 5.1% and 8.5% respectively.
http://klse.i3investor.com/blogs/kianweiaritcles/130290.jsp

The finance & insurance and business services stepped expanded 5.1% and 8.5% respectively.
http://klse.i3investor.com/blogs/kianweiaritcles/130290.jsp

The finance & insurance and business services stepped expanded 5.1% and 8.5% respectively.
http://klse.i3investor.com/blogs/kianweiaritcles/130290.jsp

Afterall, its business is bottom up and growing. Good signs.

AMMB NTA is RM 5.32. Far worth than the price now RM4.69. Don't you know that?

OK lah. Diam lah!

But I can show investment results not as bad as his investment in Xinquan, Mudajaya, JTiasa. Ha! Ha! ha!

i can't show result as good as him. He wins.

KYY is buying more today and all his remiesirs including OTB are helping him blocking at 1.35-1.36 and buying.

KYY can always create another rule to superimpose his Golden Rule. Afterall, all rules can be created.

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