We believe that earnings are set to outpace that of consensus forecast underpinned by:
1) a strong investment banking and bond origination deal pipeline,
2) further traction in CIMB Niaga’s earnings growth, and
3) relatively benign NPL trend.
Post upward revision in dividend payouts and hence sustainable ROE targets raised to 17.5%, we have raised our TP from RM13.00 to RM14.10 (2.4x FY10 PBV and 15.6x FY10 PER). We believe that the market has yet to fully appreciate the capital management upside that the group will eventually embark on in FY2010.
Maintain BUY
