THIS IS NEWBIE CALLLLLLLLLLL
Written by theedgemalaysia.com
Thursday, 19 May 2011 08:35
KUALA LUMPUR: CIMB Equities Research reiterated its OUTPERFORM recommendation on AMMB as its and consensus forecast of AMMB’s FY3/11 net profit was almost spot on.
“The full-year single-tier DPS of 18 sen (12 sen final), however, was above our projected 15.7 sen. Factoring in the rate hike, we cut our FY12-13 EPS by 5.5%. But we raise our DPS projections by 21% in view of the higher-than-expected dividend.
“However, our DDM-based target price remains at RM7.90 as the dividend growth for the interim growth phase is reduced from 13.6% to 11.7%,” it said on Thursday, May 19.
CIMB Research retained its OUTPERFORM call given the projected earnings growth of 10%-21% for FY12-14, driven by 8-9% loan growth, strong expansion of non-interest income and improving credit charge-off rates.
The stock could be catalysed by
(1) further value-add from ANZ,
(2) benefits from the group revamp,
(3) potential increase in investment banking deal flow, and
(4) swift expansion of treasury income.
