KLCI Stock - PBBANK / 1295 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	32,338,312,938 (Very Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(13.08-0.58)/0.9925 = 12.59 (Moderate)
Target Price	14.49+0.58 = 15.07 (PE 14.6, EPS 0.9925, DPS 0.58)
Decision	BUY
Comment	Revenue increased 0.7% and is continuous increasing since FY09Q2 (higher than preceding year corresponding quarter 19.3%) and also is highest all the time, eps decreased 2.2% but higher than preceding year corresponding quarter 19.9%, no cash generated from operating and still not yet generated cash from financing activities, cash largely decreased, most segments revenue still increase
First Support Price	13.0
Second Support Price	12.8
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)
TA Target Price	14.8 (2011-01-26)
HLG Target Price	14.22 (2011-03-21)
Maybank Target Price	14.1 (2011-03-29)
OSK Target Price	14.4 (2011-04-18)
CIMB Target Price	16 (2011-04-19)
Kenanga Target Price	14.8 (2011-04-19)
MIDF Target Price	14.3 (2011-04-19)

Accounting Ratio

Return on Equity	24.14%
Dividend Yield	4.43%
Profit Margin	36.70%
Tax Rate	23.61%
Asset Turnover	0.0503
Net Asset Value Per Share	3.7
Net Tangible Asset per share	3.15
Price/Net Tangible Asset Per Share	4.15
Cash Per Share	7.28
Liquidity Current Ratio	1.085
Liquidity Quick Ratio	0.9013
Liquidity Cash Ratio	0.1229
Gearing Debt to Equity Ratio	16.6512
Gearing Debt to Asset Ratio	0.9407
Working capital per thousand Ringgit sale	153.2%
Days to sell the inventory	6341
Days to collect the receivables	5038
Days to pay the payables	33843

My notes based on 2011 quarter 1 report (number in '000):-
- The improved earnings was mainly due to credit charge remained stable despite the strong loan growth

- The higher net fee and commission income was mainly due to higher income from the fund management business

- The growth was driven by continued strong loans and core deposits growth coupled with sustained strong asset quality mainly arising from property financing, financing of passenger vehicles and small- and medium-sized enterprises (“SMEs”)

- Pre-tax profit contribution from the Group's overseas operations decreased mainly due to lower net interest income and the impact on the strengthening of Ringgit Malaysia

- Included in the preceding quarter was a non-recurring goodwill income of RM18.7 million received from ING in respect of the Group's bancassurance distribution achievement for the last 3 years

- Estimate next 4Q eps after 2011 Q1 result announced = 0.2363*4*1.05 = 0.9925, estimate PE on current price 13.08 = 12.59(DPS 0.58)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2416*4 = 0.9664, estimate highest/lowest PE = 13.41/12.69 (DPS 0.58)
- 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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