KLCI Stock - PBBANK / 1295 - 2010 Quarter 1

Market Cap : 2472348084*12.02 = 29,717,623,969.68 (Large)
NTA per share : (11329034-1999611)/3478490 = 2.68
P/BV : 12.02/2.68 = 4.4851
Forecast P/E now : (12.02-0.55)/0.788 = 14.56 (High)
ROE : 21.49% (High)
DY : 0.55/12.02*100 = 4.58% (Moderate)
Fixed Asset Turnover(3 year) : -
Liquidity Ratio : -
Receivables Collection Period : -
My Target Price : 12.61 + 0.55 = 13.16 (PE 16, EPS 0.788, DPS 0.55)
My Decision : NOT BUY (unless price below 11.7)
My Comment : Revenue slow down and maintaining, good cash flow
Technical Support Price : 11.62, 11
Risk Rating : LOW

My notes based on 2010 quarter 1 report (number in '000):-
- The improved earnings was mainly due to higher net interest and financing income (14.5%), higher other operating income (31.5%) which was mainly due to higher management fee income from the fund management business, higher fee income from sale of trust units, higher brokerage and commission from stockbroking activities and higher income from the foreign exchange business. In addition, loan impairment allowance also decreased (10.6%). These were partially offset by higher other operating expenses which was mainly due to the increase in personnel costs resulting from the expansion of marketing sales force and higher business volume
- The growth in the Group’s net interest and financing income was driven by continued strong loans and deposits growth coupled with sustained strong asset quality. Gross loans had grown by 13.6% year-on-year as at 31 March 2010 as compared to RM125.4 billion as at 31 March 2009 mainly arising from financing of small- and medium-sized enterprises (“SMEs”), residential mortgages and financing of passenger vehicles. Total deposits from customers had also grown by 12.4% as compared to 31 March 2009 which partly contributed to the higher net interest income for the current financial quarter. The Group’s impaired loan ratio had further improved to 0.94% from 0.98% a year ago
- Estimate next 4Q eps after 2010 Q1 result announced = 0.197*4 = 0.788, estimate PE on current price 12.02(DPS 0.55) = 14.56
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1965*4 = 0.786, estimate highest/lowest PE = 14.64/13.22 (DPS 0.55)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1852*4 = 0.7408, estimate highest/lowest PE = 15.65/13.59 (DPS 0.55)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.177*4 = 0.708, estimate highest/lowest PE = 14.34/13.12 (DPS 0.55)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.1744*4 = 0.6976, estimate highest/lowest PE = 14.19/11.11 (DPS 0.5)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.1949*4 = 0.7796, estimate highest/lowest PE = 11.22/8.34 (DPS 0.5)

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