Maybank has just announced its results for QE31/12/2011. Its net profit increased by 0.8% q-o-q or 15.2% y-o-y to RM1.297 billion while its revenue increased by 12% q-o-q or 31% y-o-y to RM6.810 billion.
Table: Maybank's last 8 quarterly results
Chart 1: Maybank's last 25 quarterly results
Valuation
Maybank (closed at RM8.70 yesterday) is now trading at PE of 13.2 times (based on last 4 quarters' EPS of 66 sen). I think that is an undemanding valuation given its earning growth of 13% over the past one year (with, PEG ratio of 1 time). I feel that Maybank could command a PE of 15 times; thus a potential upside of 14%. Maybank pays a dividend totaling 68 sen over the past 4 quarters, which translated into a dividend yield of 7.8%.
Technical Outlook
Maybank has broken above its intermediate downtrend line at RM8.60 last week. Its next resistance is at RM9.00. If it can break above the RM9.00 resistance, it may rally to RM10.00.
Chart 2: Maybank's weekly chart as at Feb 23, 2012 (Source: Tradesignum)
Conclusion
Based on continued satisfactory financial performance & undemanding valuation, Maybank could be a good stock for medium-term investment.
5 comments:
Hi Alex ,
Can you comment on YHS and TienWah latest quarter result?
Tx!
Wow, this is such a good news to all of us :0
Hi Alex, many thanks again for your insights on Maybank. Would you mind giving your thoughts on Affin? i am seeing a lot of positives with growth rate on all segments of its core business. DPS is improving too! your take please.
Hi Political Crow's Nest
I have a prejudice against Affin that dates back to my banking days. Prejudices are silly things; they don't go away. I will admit that I could well be wrong. After all, I left the banking industry more than 18 years ago.
My technical view is mildly bearish for Affin. The stock is in an intermediate downtrend line with resistance at RM3.25, while its support is at RM3.00-3.05. If it break the RM3.00 psychological support, I would recommend a SELL for the stock. If it managed to break above RM3.25, I am prepared to be cautiously bullish.
You are probably more familiar with its fundamental than I am, so I won't comment on that.
Good luck.
Hi luckystock2
The results for YHS and TienWah are pretty good. YHS's earning was 16.4 sen for FYE Dec2011 while Tienwah's earning was 26.9 sen for FYE Dec2011. At RM2.45, YHS's PE is 15 times while Tienwah (at RM2.13) is trading at a PE of 8 times.
The immediate resistance for YHS & Tienwah are RM2.50 & RM2.10. If YHS & Tienwah can charge thru these resistance levels, the next resistance levels would be at RM2.80 & RM3.00, respectively.
I prefer Tienwah to YHS.
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