Chart: AMMB's weekly chart as at April 5, 2012 (Source: Tradesignum)
Some recent positive news flow are the appointment of Ashok Ramamurthy from ANZ as AMMB's Group MD and AMMB's application
to Bank Negara Malaysia to seek the approval of the Minister of Finance for the
possible acquisition of the 100% equity interest held by Kurnia Asia Berhad in
Kurnia Insurans (Malaysia) Berhad (here).
For 9-month ended 31/12/2011, AMMB reported a net profit of RM1.168 billion on revenue of RM6.048 billion (here). Its earning for that period was 39 sen. Thus, its full-year earning would be about 52 sen. AT RM6.34 now, AMMB is trading at a PE of 12.2 times. I believe that AMMB could command a PE of 15 times; thus giving the stock a fair value of RM7.80.
Based on undemanding valuation & bullish technical outlook, AMMB could be a good stock for trading purpose as well as for long-term investment.
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