Results Update
For QE30/6/2019, CIMB reported a net profit which dropped 24% y-o-y but rose 27% q-o-q to RM1.51 billion. As reported (above), PBT & NP dropped about 20-24%
Table 1: CIMB's last 8 quarterly results
Table 2: CIMB's results for QE30/6/2019 cf. QE30/6/2018
Graph: CIMB's P&L for last 32 quarterly results
Valuation
CIMB (closed at RM4.94 yesterday) has a PER of 7.7 times (based the last 4 quarters' EPS of 63.96 sen). In addition, it is trading a price to book of 0.9 time. It has a dividend yield of 5.3%. At these multiples, CIMB is deemed very attractive.
Technical Outlook
CIMB is now resting on the strong support from the horizontal line at RM5.00.
Chart: CIMB's daily chart as at Aug 29, 2019 (Source: MalaysiaStock.Biz)
Conclusion
Based improved financial performance and attractive valuation, CIMB is an excellent 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.
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