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Accounting Ratio
My notes based on 2010 quarter 4 report (number in '000):-
- The Group's pre-tax profit for the financial year ended 31 December 2010 of RM4,086.2 million was RM764.8 million or 23.0% higher than the previous year of RM3,321.4 million. Net profit attributable to equity holders improved by RM530.9 million or 21.1% to RM3,048.2 million. The improved earnings was mainly due to higher net interest and net income from Islamic banking business by RM650.7 million (13.8%), higher net fee and commission income by RM175.9 million (20.6%) and higher other operating income by RM84.4 million (39.5%). The higher net fee and commission income was mainly due to higher income from the fund management business whereas the higher other operating income was mainly due to higher income from the foreign exchange business. In addition to the growth in various sources of income, impairment allowances on loans and other assets had shown a drop of RM41.3 million, which partly contributed to the higher profit. These were partially offset by higher other operating expenses by RM157.6 million 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 income and income from Islamic banking business was driven by continued strong loans and core deposits growth coupled with sustained strong asset quality, as well as the impact of the various increases in overnight policy rate during the year. Gross loans had grown by 13.8% to RM156.5 billion as at 31 December 2010 as compared to RM137.6 billion as at 31 December 2009 mainly arising from financing of small- and medium-sized enterprises (“SMEs”), residential mortgages and financing of passenger vehicles. Total core deposits from customers had also grown by 12.6% or RM16.0 billion as compared to 31 December 2009 which partly contributed to the higher net interest income for the current year
- The Group's domestic commercial bank, Public Bank, recorded a pre-tax profit of RM3,677.7 million for the financial year ended 31 December 2010 and was 31.9% higher than the pre-tax profit of RM2,789.2 million achieved in the previous year. This was mainly due to higher net interest income, higher dividend income from subsidiaries, higher net fee and commission income as well as higher foreign exchange income
- Pre-tax profit contribution from the Group's overseas operations increased by RM71.7 million or 29.9% from the previous year to RM311.5 million, mainly due to lower loan impairment allowances in the current year
- For the 4th quarter ended 31 December 2010, the Group registered a pre-tax profit of RM1,130.3 million, an improvement of RM230.0 million or 25.6% as compared to the previous corresponding quarter. This was achieved on the back of strong loans and deposits growth and stable asset quality. Earning attributable to equity holders grew by 24.8% or RM168.0 million over the same period
- The Group's pre-tax profit of RM1,130.3 million for the 4th quarter ended 31 December 2010 shows an increase of RM78.9 million or 7.5% as compared to the pre-tax profit of RM1,051.4 million for the preceding quarter ended 30 September 2010. Net profit attributable to equity holders increased by RM63.5 million or 8.1% over the same period. The improved performance was mainly attributable to lower loan impairment allowances by RM59.4 million, higher net interest and income from Islamic banking business by RM32.8 million and higher net fee and commission income by RM33.4 million. These was partially offset by higher other operating expenses by RM27.9 million
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2416*4 = 0.9664, estimate PE on current price 13.4 = 13.27(DPS 0.5)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2235*4 = 0.894, estimate highest/lowest PE = 14.65/13.42 (DPS 0.5)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2096*4 = 0.8384, estimate highest/lowest PE = 14.69/13.62 (DPS 0.5)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.197*4 = 0.788, estimate highest/lowest PE = 14.87/13.59 (DPS 0.55)
- 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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| Market Capital (Capital Size) | 33,129,464,325 (Very Large) |
| Par Value | RM 1.00 |
My Analysis
| Forecast P/E now | (13.4-0.58)/0.9664 = 13.27 (Moderate) |
| Target Price | 14.11+0.58 = 14.69 (PE 15.0, EPS 0.9664, DPS 0.58) |
| Decision | BUY |
| Comment | Revenue is highest all the time, eps same with revenue, neither got free nor positive net cash flow, major consumer price index still uptrend |
| First Support Price | 12.7 |
| Second Support Price | 12.5 |
| Risk Rating | LOW |
Research House
| RHB Target Price | 15.4 (2011-01-17) |
| AMMB Target Price | 14.3 (2011-01-21) |
| Affin Target Price | 13.8 (2011-01-24) |
| ECM Target Price | 14.2 (2011-01-26) |
| HwangDBS Target Price | 13.1 (2011-01-26) |
| Kenanga Target Price | 14.8 (2011-01-26) |
| Maybank Target Price | 14.1 (2011-01-26) |
| TA Target Price | 14.8 (2011-01-26) |
Accounting Ratio
| Return on Equity | 22.27% |
| Dividend Yield | 4.33% |
| Profit Margin | 38.04% |
| Tax Rate | 23.90% |
| Asset Turnover | 0.0488 |
| Net Asset Value Per Share | 3.73 |
| Net Tangible Asset per share | 3.18 |
| Price/Net Tangible Asset Per Share | 4.19 |
| Cash Per Share | 12.18 |
| Liquidity Current Ratio | 1.0874 |
| Liquidity Quick Ratio | 0.9417 |
| Liquidity Cash Ratio | 0.2086 |
| Gearing Debt to Equity Ratio | 16.3159 |
| Gearing Debt to Asset Ratio | 0.9395 |
| Working capital per thousand Ringgit sale | 162.0% |
| Days to sell the inventory | 4844 |
| Days to collect the receivables | 5093 |
| Days to pay the payables | 32705 |
My notes based on 2010 quarter 4 report (number in '000):-
- The Group's pre-tax profit for the financial year ended 31 December 2010 of RM4,086.2 million was RM764.8 million or 23.0% higher than the previous year of RM3,321.4 million. Net profit attributable to equity holders improved by RM530.9 million or 21.1% to RM3,048.2 million. The improved earnings was mainly due to higher net interest and net income from Islamic banking business by RM650.7 million (13.8%), higher net fee and commission income by RM175.9 million (20.6%) and higher other operating income by RM84.4 million (39.5%). The higher net fee and commission income was mainly due to higher income from the fund management business whereas the higher other operating income was mainly due to higher income from the foreign exchange business. In addition to the growth in various sources of income, impairment allowances on loans and other assets had shown a drop of RM41.3 million, which partly contributed to the higher profit. These were partially offset by higher other operating expenses by RM157.6 million 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 income and income from Islamic banking business was driven by continued strong loans and core deposits growth coupled with sustained strong asset quality, as well as the impact of the various increases in overnight policy rate during the year. Gross loans had grown by 13.8% to RM156.5 billion as at 31 December 2010 as compared to RM137.6 billion as at 31 December 2009 mainly arising from financing of small- and medium-sized enterprises (“SMEs”), residential mortgages and financing of passenger vehicles. Total core deposits from customers had also grown by 12.6% or RM16.0 billion as compared to 31 December 2009 which partly contributed to the higher net interest income for the current year
- The Group's domestic commercial bank, Public Bank, recorded a pre-tax profit of RM3,677.7 million for the financial year ended 31 December 2010 and was 31.9% higher than the pre-tax profit of RM2,789.2 million achieved in the previous year. This was mainly due to higher net interest income, higher dividend income from subsidiaries, higher net fee and commission income as well as higher foreign exchange income
- Pre-tax profit contribution from the Group's overseas operations increased by RM71.7 million or 29.9% from the previous year to RM311.5 million, mainly due to lower loan impairment allowances in the current year
- For the 4th quarter ended 31 December 2010, the Group registered a pre-tax profit of RM1,130.3 million, an improvement of RM230.0 million or 25.6% as compared to the previous corresponding quarter. This was achieved on the back of strong loans and deposits growth and stable asset quality. Earning attributable to equity holders grew by 24.8% or RM168.0 million over the same period
- The Group's pre-tax profit of RM1,130.3 million for the 4th quarter ended 31 December 2010 shows an increase of RM78.9 million or 7.5% as compared to the pre-tax profit of RM1,051.4 million for the preceding quarter ended 30 September 2010. Net profit attributable to equity holders increased by RM63.5 million or 8.1% over the same period. The improved performance was mainly attributable to lower loan impairment allowances by RM59.4 million, higher net interest and income from Islamic banking business by RM32.8 million and higher net fee and commission income by RM33.4 million. These was partially offset by higher other operating expenses by RM27.9 million
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2416*4 = 0.9664, estimate PE on current price 13.4 = 13.27(DPS 0.5)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2235*4 = 0.894, estimate highest/lowest PE = 14.65/13.42 (DPS 0.5)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2096*4 = 0.8384, estimate highest/lowest PE = 14.69/13.62 (DPS 0.5)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.197*4 = 0.788, estimate highest/lowest PE = 14.87/13.59 (DPS 0.55)
- 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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