Highlights of the day! Enjoy!
§ Hong Leong Bank (2QFY12 Results): In line with consensus (Maintain HOLD, TP: RM11.50) [download report]
2QFY12 results were in line with market expectations. Y-o-y comparisons are meaningless because 1HFY12 earnings consolidated EON Bank which was absent in the previous year. With the completion of its rights issue, core capital ratio recovered to a comfortable 11.5%. A higher interim dividend was proposed but although we have raised our forecast dividends, payout ratio is expected to remain low. We maintain our EPS forecasts, target price and HOLD recommendation, although HLB remains our top pick amongst the Malaysian banks for its growth potential post-merger.
§ CIMB Group Holdings (FY11 Results): Within expectations (Maintain HOLD, TP: RM7.00) [download report]
FY11 results were within market expectations. EPS growth of 11% came in 2% above consensus. PBT before provisions was up only 4% y-o-y despite a 14% growth in loans, as net interest margins fell and non-interest income was down 5% y-o-y. FY11 DPR was 41%, the lower end of its 40-60% KPI. Our EPS forecasts have been adjusted marginally, hence we are retaining our target price and HOLD recommendation.
Other reports
Other Malaysian news
§ Lion Industries: 1HFY12 results
§ Shin Yang: 1HFY12 results
§ Bumi Armada: Posts higher pre-tax profit for FY2011, sees busy 2012
§ Star Publications: Print, new media segments lift profit
§ IOI Properties: Gets tenants for mall
§ IGB Corp: Planning hotel REIT
§ Muhibbah Engineering: Files suit to recover RM381m
§ Kimlun: Secures RM72m contract
§ Oil & Gas: Tax on local vessels needs review
§ Economy: GDP set to grow 5%
Global news
§ US: Pending home sales show industry regaining footing
§ US: Consumer debt falls in 4Q on mortgage balances
§ Europe: Merkel wins Greek aid vote
§ Europe: Spain misses 2011 budget target by wider than estimated margin
§ South Korea: Manufacturers’ confidence rises to five-month high
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