AmResearch
Malaysia Building Society - Excellent opportunity to buy
- We are maintaining our buy rating on Malaysia Building Society Bhd (MBSB), with a lower fair value of RM3.70/share (from RM3.90 previously) (cum basis) or RM2.23/share (from RM2.30) on ex-rights price basis. Our earnings forecasts and fair value already reflect a possible rights issue, and is fully diluted for the previous warrants issue in FY11. Based on a fullydiluted ROE (for previous warrants and potential imminent rights issue) of 20.0% (from 20.3% previously), we peg the fair P/BV at 1.99x (from 2.0x previously).
- Bank Negara’s latest measures to promote a sound household sector include limiting the maximum tenure of personal loans to a maximum of 10 years. Given the new measure, we now expect potential size of the overall market size to be reduced, to an estimated RM128bil, from up to RM191bil earlier.
- We estimate the current industry size at RM73bil, which means that the growth potential for the industry is still strong (from RM73bil currently to RM128bil). There will likely be a reduced amount of loan that borrowers could afford, but this will be offset by organic growths of new entry of civil servant force every year and salary increases.
- MBSB views the latest measures positively as these also apply to credit cooperatives regulated by Suruhanjaya Koperasi Malaysia. MBSB believes that this levels the playing field for all providers.
- We believe MBSB’s average tenure of personal loans is likely around 18 years. We acknowledge there may be some impact to loans growth for MBSB as there may be certain portion of borrowers which prefer to remain on longer-term tenured loans and not be refinanced on shorter-term tenured loans. In terms of personal loans growth, we have taken down our assumption to 40% (from 50%) FY13F and 35% (from 45%) FY14F.
- But, the latest rulings does not change MBSB’s business model, which is primarily high-margin and lowrisk business (given the direct salary deduction scheme), nor MBSB’s ability to compete, which it has done successfully in the past. The only remaining negative surprise may be a much slower-thananticipated personal loans growth, in which case, this is also likely to be balanced by a possibly much less dilutive rights issue. This is because MBSB’s CET1 is estimated to come in at a high level of 11.9% by endFY13F, post the rights issue.
- On the other hand, the other positives which are not priced in yet in our forecasts, is MBSB’s transformation into a full banking institution with ability to capture the low cost deposit segment. We maintain BUY on MBSB.
Source: AmeSecurities
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Discussions
Be the first to like this. Showing 50 of 63 comments
Hustle, don't give tips to little boys ler, tomorrow they claim they announced it first..... hahahahahahaha
2013-07-11 11:32
kuahcheeloh is a big boi?? hahaha. that is too funnie ler.. the stewpeah kow of this site is a big boi.. hahaha u know why u are called kuah chee loh ah?? LOLZ
2013-07-11 11:38
kuahcheeloh where were u ler. finish sukking bals ah?? u can suk mine if u want ler... hahahahahahaha
2013-07-11 11:39
Posted by Hustle > Jul 11, 2013 11:36 AM | Report Abuse
Is ok for him to claim the title,I only want to claim the Agung Note :)
LOL Agreed!
seems like everyone is ignoring luluboy nowadays! why eh? and tapir is too thick skin to notice! hahahahahaha
2013-07-11 11:40
LOLZ u can ignore me ler kcloh. cos i am too big to be ignored ler. u poor small people like noticing me. that is true big ler.
2013-07-11 11:41
4am activities like suck*ng balls, i leave that to you la luluboy to find how to pay back your bosses for the massive losses. Shanghai composite index climbing last few days and our little tapir "closed" his position in China! LOL
2013-07-11 11:42
LOLZ@ kcloh u are a confused little girl ler. i am not who u think i am u foool. u are one stewpead nut.
2013-07-11 11:43
kcloh is one stewpead nut. he likes sukking the kow in his mader house for milk ler
2013-07-11 11:45
Posted by newbiestock > Jul 11, 2013 11:43 AM | Report Abuse
LOLZ@ kcloh u are a confused little girl ler. i am not who u think i am u foool. u are one stewpead nut.
oh, sorry! just a crossed bred tapir, and not a full blown one! LOL
c'mon, what happened to muhibbah and mbsb? why not rocketing like other "big" priced stocks? hahahahahaha
2013-07-11 11:46
lolz@kcloh u seem to like tapirs. why ah. they got a big old fella ah. u can suk on. i think elephant got bigger one ler.
2013-07-11 11:47
dont worry, tapir. i keep you busy here so that others can do their postings peacefully. this is not a counter thread, so let's go for it! LOL
2013-07-11 11:48
Posted by newbiestock > Jul 11, 2013 11:47 AM | Report Abuse
lolz@kcloh u seem to like tapirs. why ah. they got a big old fella ah. u can suk on. i think elephant got bigger one ler.
you have tried elephants' too? LOL
after trying already, you still think ar? your mouth so big to accompany all until you lose all sense of reality? LOL
2013-07-11 11:49
newbiestock
250 posts
Posted by newbiestock > Jul 11, 2013 11:48 AM | Report Abuse
buy hlind. bonus one for one on the way . its going to rm 10
newbiestock
250 posts
Posted by newbiestock > Jul 11, 2013 11:48 AM | Report Abuse
divident soon also
you are very responsive like a good tapir behind the bushes i mentioned a few days ago! LOL
2013-07-11 11:52
newbiestock
250 posts
Posted by newbiestock > Jul 11, 2013 11:48 AM | Report Abuse
buy hlind. bonus one for one on the way . its going to rm 10
newbiestock
250 posts
Posted by newbiestock > Jul 11, 2013 11:48 AM | Report Abuse
divident soon also
and notice the way of how the hedge fund sells their products? hahahahahahahahahahahahahahahaha
no wonder goldman sx told him to F-off! LOL
2013-07-11 11:53
oh gosh, please don't tell me tapir's brain deep freeze again after being put to place by big boy?! LOL
2013-07-11 11:56
kcloh is a chinese hater that is why he is after me always so help me guys.
2013-07-11 11:57
optimusprime should come back, he is the only one with half a brain to help you newbiestock! LOL
2013-07-11 11:58
u are a low person kcloh. no morals at all. u are jus a waste of my time. useless little kiddie u are kcloh
2013-07-11 12:04
Posted by newbiestock > Jul 11, 2013 12:03 PM | Report Abuse
ok datuk. u are cute and nice. i like u datuk.. talk later
homo traits showing? no wonder you flock around "datuks" and "tan sris" just to get a taste of their rich dongs! now i understand. LOL
but still got F-out by goldmans? LOL
2013-07-11 12:05
u are a useless little kiddie kcloh. too low for me to talk too. i feel sad for u. very sad.
2013-07-11 12:06
Posted by newbiestock > Jul 11, 2013 12:04 PM | Report Abuse
u are a low person kcloh. no morals at all. u are jus a waste of my time. useless little kiddie u are kcloh
uh-uh looks like running out of venom! forgot to even go to name-callings? seething ar? hahahahahahahahahahahahahaha
2013-07-11 12:06
kcloh u are low life. too low for me ler. u win with ur hatred. i am kind and nice. i forgive u for being evil and abusive ler.
2013-07-11 12:07
Posted by datuk > Jul 11, 2013 12:02 PM | Report Abuse
No times for fun yet........making $ is a far more business!! Mai kacau!!! I'm disposing some share.....wait for afternoon....for joking session ok!!!
even datuk in i3forum doesnt want your bj solicitation ler! hahahahahaha
can you explain to the rest of us, what datuk means by "fun" between you two? LOL
2013-07-11 12:08
kcloh plz stop spamming. then i will stop sperming ur mader OK. agree???
2013-07-11 12:09
i thought i'm pretty right to label it as "fun" when such a word like "blowjob" being widespread here and there netween you and newbie!!!
2013-07-11 12:10
i see it was the 12.12pm post then that is validated. looks like you have a full time "4am job" eh, tapir? LOL
2013-07-11 12:16
sorry, i dont go for behind the bushes solicitations! something you learned very well from your mader i see! LOL
2013-07-11 12:19
kcloh lets be friends.. i lose i accept. peace. let there be peace in i3 investor.
2013-07-11 12:20
comes on.....dun entangled into the "blowjob games'! masuk dan keluar with "money games" are more fun leh......i think KC ....you should take lead to stop.....dun expect from newbie to do that.....kaw lioa lah....
2013-07-11 12:22
hahaha.... bonkers already tapir. losing money too much. i am sorry i brought up bad memories of goldman chief trader told you to F-off! LOL
2013-07-11 12:25
sorry kcloh. sorry i3investor for being a bad boy. i am sorry. peace u all
2013-07-11 12:26
Sorry boh kaw!!!! please making more $ for yourself will be pleasing everyone here !
2013-07-11 12:27
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
KC Loh
Nah inwest88, these donkeys thinks they rule the roost here, until they are put in their proper places by bigger boys. Then only they are seen as who they really are : barking chao kau dogs! LoL
Ask the donkey about muhibbah also! People want to see the trading done and they say they suddenly have to fly to Timbuktu! Haahahahaha
2013-07-11 11:31