Stock Name: BIMB
Company Name: BIMB HOLDINGS BHD
Research House: S&P



Standards and Poor's Equity Research Services (S&P) has raised BIMB Holdings Bhd's call to "buy" from "hold" and the 12-month target price to RM1.50 from RM1.40 on valuation grounds.

In a statement today, S&P said the target price included the group's 68 per cent share of the market value of Syarikat Takaful Malaysia Bhd and a forecast of financial year 2010 dividend.

It said the price-to-book (P/B) multiple remained at 33 per cent discount to the average 2011 P/B valuation for the banking sector.

"This is justified given BIMB's smaller market capitalisation, weaker relative asset quality, less dynamic growth track record, holding company discount and low free float," it said.

S&P said its analysis and forecasts carried a high degree of uncertainty than normal as it had been unable to meet with BIMB's management to obtain additional information since initiating coverage on the stock.

"The risk to our recommendation and target price include higher-than-expected provisioning, resulting from asset quality deterioration due to a weakening of the domestic economy," it said. -- Bernama