A simple fundamental metric I sometimes look at is EPS/RPS, a proxy for Profit Margin (I look at many things, this is just one of many). Using their latest reported FYE: a. MAYBANK = 77.5 sen / 534 ~ 15% b. PBBANK = 34.3 sen / 131 ~ 26% (higher than MAYBANK - expected). c. AMBANK = 56.4 sen / 140 ~ 40%! Too good to be true??? Anyone has any bank comparative insights into the 40% figure? Will be going overseas for holidays for a fortnight, no time to look closer. Previously traded using Technical Analysis only on AMBANK (and did decently, catching the buys around 3.26 and selling around 4.12), but now looking harder at the fundamentals especially after the 1MDB one-time massive billion $ provisions at FYE2021, for longer term holdings till end of bull market. I am considering owning on weakness for these reasons: 1. Additional diversification to my already well diversified portfolio. 2. Wanting to tilt slightly to a higher bank sector weighting. 3. Potential to revalue towards P/BV > 1 at peak of bull market. 4. Decent dividend yield. 5. If EPS grows, DPS should grow. However, I don't yet understand that 40% figure - so, for now, will only consider taking 1/5th of a neutral position (if neutral is around 2.5%-3% capital per position, this one is probably 0.5% or so for now), as still under research and construction - no rush I am patient to spend months building up a position. The long term technical setup is interesting ... but would like to better understand why 40% .... Appreciate if the AMBANK experts can share insights to the 40% vs other major banks ...
Merger is not easy because its involved a lot of major shareholders. Unless EPF increased their shareholding ambank to above 30%. The largest shareholders had a bigger says
Ambank's tangible book value per share for the quarter ending in March 2024 was RM5.75. At the current price, it is trading at a price-to-tangible book ratio of 0.74. This value is on the lower side compared to Ambank's history over the last 10 years. Its tangible book ratio has ranged from as high as 1.73 to as low as 0.59.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
troy88
2,794 posts
Posted by troy88 > 2024-03-11 10:21 | Report Abuse
Come drop below RM4 again for me to makan more..