@Mabel U also bought this? I can see the outlook is improving after the restructure with revenue and profit increase gradually. Gross NPL also drop to 1.07%.
@kyliew BIMB got dividend reinvestment plan which similar to Maybank, by doing this the cash / capital will not leave the company, then BIMB can use the dividend fund to lend out again and making profit, it is a triple win on no capital / retain earning outflow, compliance on BNM capital ratio, EPF / institutional investor accumulate more share and sell the share in secondary market at higher price. FYI got 90% shareholders actually opt for dividend reinvestment plan to enjoy better return.
#JrWarren @Mabel U also bought this? I can see the outlook is improving after the restructure with revenue and profit increase gradually. Gross NPL also drop to 1.07%.
30/08/2023 10:36 AM
Yes JR together with Maybank and CIMB. Below is what I shared in March why Mabel decided to sell Public Bank and replaced it with BIMB..
To Our Success !
Meow
Stock: [BIMB]: BANK ISLAM MALAYSIA BERHAD
Mar 9, 2023 11:05 PM | Report Abuse
#speakup @kyliew, can u share why u buy bimb besides it at record low price? 09/03/2023 10:00 PM
Here's why..
Do you know that every year 1 % of Muslim Population in Malaysia will go for Hajj. Hajj is obligatory to those who can afford to go. There are 12 Million Muslim who are above 18 years old can qualify for this trip. For most of them it's a journey of a lifetimes.
In addition to the above, Muslim can perform Umrah at any time of the year. Here, there is no limits for the trip. Where do you think the Muslim park their money for this kind of trip? Surely they will park their money in BIMB. BIMB is a basically the preferred bank for Tabung Haji. Completely Shariah Compliances.
REWARDS
Trading at 3.8% below our estimate of its fair value
Earnings are forecast to grow 11.74% per year
After evaluating using Warren Buffett Economic Moat and Risk Analysis Framework, this algorithm calculates BIBM Business Performance includes Earnings, Free Cashflows, Return on Equity, Net Profit Margin, Interest Coverage and Dividends over the last 10 years. On a Scale of 1 to 10, it gives a score of 5 which is acceptable for Mabel's selection.
Few weakness in BIMB and one of them are in cashflows. FYI, there are three types of cash flow; operating, investing, and financing. Operating cash flow includes all cash generated by a company's main business activities while Investing cash flow includes all purchases of capital assets and investments in other business ventures. Currently BIMB Operating and Investing cashflow are negative. However, negative is not necessarily bad thing especially for investing as it is normal for bank to invest and expand. This usually translate to negative outflow for healthier future inflow. The negative cashflow in operation means they spend too on time and material, or if their customers don't pay them quickly enough, it will make their operating cash flow negative. They need to develop other strategies to recover their loan. Additionally, for bank this is normal for negative operating cash flow as bank main business activities are lend their money to customers while they are still expanding. So they lend more to clients so that their deposit also increases. This lending won’t give immediate return but it eventually in long run may recover as clients pay regularly.
Full year 2022 earnings released: EPS: RM0.23 (vs RM0.22 in FY 2021)
Full year 2022 results: EPS: RM0.23. Revenue: RM2.16b (up 9.1% from FY 2021). Net income: RM491.7m (down 8.0% from FY 2021).
Profit margin: 23% (down from 27% in FY 2021). The decrease in margin was driven by higher expenses.
Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Banks industry in Malaysia.
Another reason why Mabel loves BIMB is because it gives good Dividend compare to Mabel's other Collection of Great Companies. In addition, this Bank is supported by Institutional Investors..
List of Dividend Payers
Company Annual Yield Bank Islam Malaysia Berhad 6.6% Malayan Banking Berhad 6.4% Sime Darby Berhad 5.8% PETRONAS Chemicals Group Berhad 5.7% KLCC Property Holdings Berhad 5.6% CIMB Group Holdings Berhad 4.6% Sime Darby Property Berhad 2.9% Sunway Berhad 2.7% Gamuda Berhad 2.7%
Bank Islams 1H23 earnings were within our expectations and we tweak earnings up by 2-4% for FY23-25E. Positively, the bank bucked the industry trend with a QoQ improvement in NIM and its gross impaired financing ratio. We maintain a HOLD on Bank Islam with a slightly higher TP of MYR2.20 (from MYR2.05) on rolling forward valuations to FY24E on an unchanged PBV of 0.7x (FY24E ROE: 7.1%).
speakup @Mabel, u like yields, buy some REITS. Some REITS give 5-6% dividend 30/08/2023 8:40 PM
Indeed speakup!
Previously, beside KLCC Mabel also has IGB, Pavilion and Sunway REIT. Now Mabel keep only KLCC (5.6% Yields) for Malaysia and CapitaLand Integrated Commercial Trust (5.5% Yield) and Keppel REIT (6.8% Yield) in Singapore.
So currently, Mabel’s Real Estates covers 2 S-REITs and 1 M-REITs :
S-REITs
CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT for short, is a commercial and retail REIT with a diversified portfolio of properties in Singapore, Germany, and Australia. They own and invests in income-producing assets, which are used for retail purposes primarily in Singapore. Its portfolio consists of approximately 3,100 leases with local and international retailers and has a committed occupancy of approximately 97.6%. It is leader in Singapore and Asia’s third largest REIT just behind Mulan’s Hong Kong’s Link REIT and Australia’s Scentre Group. It Assets Under Management of S$24.2 billion as of 31 December 2022. This week CapitaLand Investment has acquired six rental housing assets in Japan for $141.4 mil.
Keppel REIT is one of the biggest office landlords with a market cap of $3.6 billion. It owns and manages 12 office buildings across Singapore, Australia, and Korea. These are prime grade-A offices. In Singapore, it owns some of CBD’s most iconic buildings, including a 79.9%-stake in Ocean Financial Centre, 33.3%-stake in Marina Bay Financial Centre, 33.3%-stake in One Raffles Quay and Keppel Bay Tower.
M-REIT
KLCC is Malaysian Iconic Building with The Petronas Twin Towers. It was the world's tallest twin skyscrapers and remained the tallest buildings in Malaysia until 2019, when they were surpassed by The Exchange 106. TDM once said it will eternally remain the World’s Tallest Building when you add the two tower together. Full year 2022 earnings exceed analysts’ expectation.
Perhaps this is the most perplexing. Mabel’s Biggest S-REIT has a Market Capitalization of SGD 12.765 billion while Mabel’s Biggest M-REIT has a Market Capitalisation of RM 12.4 billion. That mean CICT is 3.5X bigger that KLCC.
@speakup, given recent breakout, some momentum traders might be buying as it appears to be on the uptrend since June lows. Personally, as I am overweighted, I am not buying. In fact, I'll be looking to sell some ~ 10% holdings on strength to these momentum buyers at various points on the way up 😂. I am prudently expecting this year's dividend to be at least 13.5 sen (LY 13.8 sen), which is giving me a Dividend yield on cost of 7.4%. My goal is to hit around Dividend Yield on cost of 10% at average long term portfolio weighting and then I can forget.
Bank Islam Malaysia Berhad Announces Single-Tier Interim Dividend for the Financial Year Ending 31 December 2023, Payable on 12 January 2024
Bank Islam Malaysia Berhad announced single-tier interim dividend of 12.59 sen per ordinary share for the financial year ending 31 December 2023, payable on 12 January 2024. Entitlement date is 19 December 2023. Ex-date is 18 December 2023.
NEW YORK (Dec 23): Wall Street is counting on the so-called Santa Claus Rally to bring record highs as markets close out 2023 with strong gains. The S&P 500 is up over 4% in December alone and has risen 24% this year, bringing it within 1% of a new all-time high. The benchmark index is also on track for its eighth straight positive week.
If history is any indication, that momentum is likely to continue in the short term. The end of the year tends to be a strong period for stocks, a phenomenon dubbed the “Santa Claus Rally”. The S&P 500 on average has gained 1.3% in the last five days of December and first two days of January, according to data from the Stock Trader's Almanac going back to 1969. Those gains have been pinned on reasons varying from buying before the new year following tax-related sales to general holiday hopefulness.
This year, optimism is high. The Federal Reserve (Fed) surprised investors earlier in December by signaling that its historic monetary policy tightening is likely over and projecting rate cuts into 2024, following signs that inflation is continuing to moderate. Data on Friday supported that trend, showing annual US inflation, as measured by the personal consumption expenditures price index, slowed further below 3% in November.
Bursa Malaysia is anticipated to stage a rebound next week, buoyed by continuous support from foreign funds and improving economic conditions. From a technical perspective, the FTSE Bursa Malaysia KLCI (FBM KLCI) failed to surpass the critical resistance level of 1,465 despite a few attempts, followed by four consecutive days of decline and broke below the 20-day exponential moving average (EMA) on Friday. However, as the index has managed to hold above its 50-day EMA, the odds of an upside move are increasing. Hence, we believe the benchmark index is still in a consolidation mode with a slight positive bias.
As such, we anticipate the benchmark index to trend within the 1,450-1,470 range for next week, with immediate support at 1,450 followed by 1,440. On a Friday-to-Friday basis, the FBM KLCI fell 7.87 points to end the week at 1,454.38 versus 1,462.25 a week ago.
Finally received BIMB dividend. A nice 12.59 sen. Dividend yield on Cost is 6.7%. Price gain is 19%. Holding less than a year. BIMB beats my benchmark of 9% per annum very, very handsomely.
Thank-you BIMB, for helping made my portfolio to new all time high again today. 7th time this month in January!
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....
Dakewlest
1,749 posts
Posted by Dakewlest > 2023-08-29 20:36 | Report Abuse
QR out, better than last quarter. Maybe can reach RM2.50 faster than expected.