Highlights of the day
§
CIMB
Group Holdings (Results Review): 3QFY12:
Broadly in line (Upgrade from SELL to HOLD, TP: RM7.80) [download
report]
3QFY12 results were well in line with both market and
our expectations. 9MFY12 profit before
provisions grew 17% y-o-y, boosted by a 23% jump in non-interest income. Higher
provisions limited PBT growth to 13% y-o-y. We maintain our EPS forecasts and
target price at RM7.80 based on our 2013 valuation. However, we are upgrading
our call from a SELL to HOLD as CIMB’s share price has fallen 3% since our last
Results Review and is trading below our current target price.
§
Malaysia
9MFY12 net profit of RM142m (-51% y-o-y) came in below expectations at
37% and 47% of our and consensus full-year forecasts, respectively. The
variance from our forecast is due to slower-than-expected revenue recognition
and lower-than-expected margins. Due to the poor set of results we cut our FY12
and FY13 net profit by 10-20%. Correspondingly, our target price is reduced
from RM4.44 to RM4.00 based on 18x FY13 EPS. The stock is trading at a hefty PE
compared to its slow growth prospects, low order book replenishment and lower
margins compared to peers.
Other reports
§
Boustead
Holdings (Results Review): Lower-than-expected
9MFY12, saving grace is 6% yield (Maintain HOLD; TP: RM4.65) [download
report]
Other Malaysian news
§
Malaysia
§
Tan Chong: Nissan Almera gets over 7,000 bookings
§ TH Heavy Engineering: On the mend
§
Trinity Corp: Loses
suit over Trinity brand name
§
Scomi
Engineering: Eyes Penang
deal
§
O&G: Ekuinas
plans to list its OSV unit
Global news
§
US: Home starts at four-year high boost expansion
§ US: Fed’s Lacker opposes policy link to
unemployment rate
§ Europe: EFSF says bond sale delayed after Moody’s France
§ Europe: Spain
§ Europe: Cyprus
§ China
§
Japan
§ Global: Asia ’s top economies aim for trade deal as sea
dispute set aside
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