Maybank reported a very good set of result for QE30/9/2013. Its net profit increased by 11% q-o-q or 16% y-o-y to RM1.746 billion while revenue was mixed- down 3% q-o-q but rose 5% y-o-y to RM8.392 billion,
Table: Maybank's last 8 quarterly results
Chart 1: Maybank's last 32 quarterly results
Technical Outlook
Please refer to my earlier post, but do note that the stock is still in a long-term uptrend line, with support at RM9.40. This means that the stock's technical outlook is still positive.
Valuation
Maybank (closed at RM9.55 yesterday) is now trading at a PE of 13.2 times (based on last 4 quarters' EPS of 73 sen). At this PE, Maybank is deemed attractive. From Table 2 below, we can see that Maybank is trading at PE multiple similar to AMBank & CIMB but nearly 20% cheaper than PBBank. As the top bank in Malaysia, I believe Maybank should command a higher multiple than 13 times.
Table 2: Top 5 Banks in Malaysia
Conclusion
Notwithstanding my earlier post, I believe that Maybank is a good banking stock for long-term investment.
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:
Hi Alex
How do you view Mudajya? It had a breakout above its downtrend trendline 2.80 last month, and has since drop back. Do you consider this a fake breakout or a throwback?
Thx
Hi Alex, from your table it seems like RHB is even better in terms of P/E - why are you not recommending it vs Maybank ? Thanks
Hi JY
Mudajya is slowly drifting higher. As long as it stays above RM2.75, it is not bearish. As long as it stays below RM3.00, it can never be bullish. Between the two price levels, it is just drifting...
Hi Ros Tank
It looks that way- RHB is the lower priced stock. Of course, you have the concern about its management team which is still being reconstituted. If you can live with that, you can buy into the stock.
Post a Comment