(CIMB MK/HOLD/RM5.47/Target: RM5.60)

We believe that much of the group’s strong FY17 earnings recovery has been factored in as reflected in both consensus and our earnings growth assumption of 20% and 21% respectively for FY17. Against projected ROE of 9.2% for FY17, we think that a 1.0x P/V is fair. We raise our TP to RM5.60 after imputing stronger fee income growth given the more vibrant capital markets. Maintain HOLD. Target price: RM5.60 (1.0x FY17F P/B, 9.2% ROE). Entry: RM5.10.

Source: UOB Kay Hian Research - 13 Apr 2017