Monday, May 27, 2013

Maybank- Where is the Captain?

Result Update

For QE31/3/2013, Maybank's net profit increased by 3% q-o-q or 12% y-o-y to RM1.506 billion while evenue increased by 17% q-o-q or 5% y-o-y to RM8.23 billion.

 
 Table: Maybank's last 8 quarterly results

 
 Chart 1: Maybank's last 27 quarterly results

Wahid is leaving...

Maybank's current CEO, Wahid will be leaving Maybank to take up a ministerial post soon. Who will be piloting the great ship, Maybank through the choppy water?

Valuation

Maybank (closed at RM10.08 on May 23) is now trading at a PE of 13.8 times (based on last 4 quarters' EPS of 73 sen). I believe Maybank should trade at a PE of 15 times.

Technical Outlook

Maybank is in an upward channel, with support at RM9.00 & resistance at RM11.00.


 
Chart 2: Maybank's weekly chart as at Mar 23, 2013 (Source: Quickcharts) 

Conclusion

Based on steady growth in financial performance, attractive valuation & positive technical outlook, Maybank is a good stock to hold for long-term investment. However, the immediate concern will be the search for the right person to take over the helm in Maybank. Can the successor lead the bank as well as Wahid? In the interim, Maybank's share price should be capped at the present level.

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.

2 comments:

kenny said...

is CIMB a good buy?
Any recommended share to buy after election?
I see 11 days raise right after election..

Alex Lu said...

Hi kenny

A lot has been written about CIMB. You may google it and read to your heart content. I will note only two things:
1. This will probably be one of the most aggressive & innovative investment banking groups in the most dynamic region in the world.
2. It is trading above its strong resistance of RM8.50- which was its all-time high previously.

If CIMB can stay above the RM8.50 mark, it may go higher.