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.
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4 comments:

  1. AnonymousWednesday, November 14, 2012 3:48:00 PM

    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!?

    ReplyDelete
  2. Alex LuWednesday, November 14, 2012 5:22:00 PM

    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.

    ReplyDelete
  3. AnonymousThursday, November 15, 2012 7:11:00 PM

    Hi Alex

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

    ReplyDelete
  4. sookpengMonday, December 31, 2012 4:02:00 PM

    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 ?

    ReplyDelete