(CIMB MK/HOLD/RM6.13/Target: RM6.20)

1Q17 earnings were 8% above estimates driven by lumpy writebacks. Management remains cautiously optimistic in achieving a 10% ROE vs our 9.8% forecast for FY17 and potentially 10.5-11.0% for FY18. Against a more positive backdrop, we raise our earnings forecast by 8% and corresponding TP to RM6.20 (1.12x 2017F P/B) from RM5.60. However, we are maintaining our HOLD call as our earnings forecast already suggests a relatively robust 30% FY17 earnings growth recovery. Entry level: RM5.70.

Source: UOB Kay Hian Research - 25 May 2017