BIMB: Earnings Rose

Results Update

In QE30/9/2018, BIMB's net profit rose 32.5% q-o-q or 4.7% y-o-y to RM199 million while revenue rose 9.8% q-o-q or 19.4% y-o-y to RM1090 million. BIMB's PBZT increased by RM59.0 million or 24.9% q-o-q. The increase came from:

1) Bank Islam Msia Bhd which reported an increase in PBZT of RM31.5 million or 16.3%, due to increase in total income of RM54.1 million which was partly offset with higher IATD (increased by RM14.1 million) and increased net allowance charged for impairment on financing and advances (increased by RM11.3 million); and

2) Syt Takaful Msia Bhd which reported an increase in PBZT of RM26.4 million or 43.0%, which was attributable to higher net wakalah fee income.


Table: BIMB's last 8 quarters' P&L


Graph: BIMB's last 26 quarters' P&L

Valuation

BIMB (closed at RM3.75 in morning session) is now trading at a PER of 9.4x (based on last 4 quarters' EPS of 40 sen). At this pER, I believe BIMB is a fairly attractive.

Technical Outlook

BIMB has been declining gradually from a high of RM4.40 in early January to a recent low of RM3.40. Its immediate support is at RM3.40-3.50 while its immediate resistance is at RM3.75-3.80. Until BIMB has broken above its downtrend line at RM3.85, it is likely to remain in its diwnward channel.


Chart 1: BIMB's monthly chart as at Nov 29, 2018_12.30pm (Source: MalaysiaStock.Biz)

Chart 2: BIMB's daily chart as at Nov 29, 2018_3.30pm (Source: MalaysiaStock.Biz)

Conclusion

Based on tsatisfactory financial performance and fair valuation, BIMB is a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.