Wednesday, November 14, 2012

Maybank- a good value banking stock

Results Update

For QE30/9/2012, Maybank's net profit increased by 4% q-o-q or 13% y-o-y to RM1.50 billion while its revenue increased by 1% q-o-q or 15% y-o-y to RM6.97 billion.


Table 1: Maybank's last 8 quarterly results


Chart 1: Maybank's last 28 quarterly results

Valuation

Maybank (closed at RM9.05 at the end of the morning session) is now trading at a PE of 12.4 times (based on last 4 quarters' EPS of 73 sen). It could trade up to a PE of 15 times or RM10.95. Maybank has a dividend yield of 7.5% due to its high dividend payout.

Technical Outlook

Maybank is in an uptrend line. It has broken above its high of RM8.75 recorded in February 2007.


Chart 2: Maybank's weekly chart as at Nov 14, 2012_12.30pm (Source: Quickcharts)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Maybank is rated a BUY. 

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Maybank.

4 comments:

Anonymous said...

Hi Alex

Can you comment on WCT and WCT-WB? WCT will held EGM on next Wed to seek shareholder approval for bonus and free warrant, which also resulted adjustment in WCT-WB exercise price from 2.50 to 1.85.

Based on theoretical ex all, WCT should trade at 2.30 , which also implied the gap between WCT and WB exercise widen to as much as 45sen. Based on current WCT-WB trade at 24.5sen, there is potential 20sen upside potential, is it too good to be true!?

Alex Lu said...

Hi Hng,

Where did you get the numbers from? I mean the adjusted WCT-WB exercise price from 2.50 to 1.85 and the theoretical ex all of WCT at 2.30. If one is adjusted by a factor of 0.74 while the other is adjusted by a factor of 0.84. Something doesn't seem right. Please check again.

Anonymous said...

Hi Alex

The Adjusted exercise is stated in its circular (page 20) to shareholder for its upcoming EGM on next Wed.

sookpeng said...

Hi Alex,
WCT-WB last Friday closing price was 0.355 @ exercise price 1.85. While mother share 2.75. There is about 0.575 lower than buying mother direct (of course exclusion fees). Isn't this a good buy ?