KLCI Stock - PBBANK / 1295 - 2010 Quarter 2

Market Cap : 2472348084*12.14 = 30,014,305,739.76 (Very Large)
NTA per share : (12033518-1985874)/3502155 = 2.87
P/BV : 12.14/2.87 = 4.23
Forecast P/E now : (12.14-0.5)/0.8384 = 13.88 (Moderate)
ROE : 22.77% (High)
DY : 0.5/12.14*100 = 4.12% (Moderate)
Fixed Asset Turnover(3 year) : Not applicable
Liquidity Ratio : Not applicable
Receivables Collection Period : Not applicable
My Target Price : 12.58+0.5 = 13.08 (PE 15, EPS 0.8384, DPS 0.5)
My Decision : BUY
My Comment : Revenue and profit increasing, negative cash flow due to net changes in operating assets, navps increasing
Technical Support Price : 11.6
Risk Rating : LOW

My notes based on 2010 quarter 2 report (number in '000):-
- The Group's pre-tax profit for the financial half year ended 30 June 2010 was 21.7% higher than the previous corresponding half year. The improved earnings was mainly due to higher net
interest and financing income (15.6%) and higher other operating income (19.0%), which was mainly due to higher income from the fund management business, higher foreign exchange income as
well as higher brokerage and commission from stockbroking activities. In addition, loan impairment allowance also decreased by 6.6%. 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 14.1% year-on-year to RM147.6 billion as at 30 June 2010 as compared to RM129.4 billion as at 30 June 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 12.2% or RM18.9 billion as compared to 30 June 2009 which partly contributed to the higher net interest income for the current financial half year
- The Group's pre-tax profit for the 2nd quarter ended 30 June 2010 shows an increase of 6.4% as compared to the pre-tax profit in the preceding quarter ended 31 March 2010. The improved performance was mainly attributable to higher net interest and financing income and higher other operating income resulting mainly from higher fee income and lower other operating expenses
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2096*4 = 0.8384, estimate PE on current price 12.14 = 13.88(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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