Bursa Malaysia Stock Watch

RHBCAP - RHBCap a 'buy', says HwangDBS

kltrader
Publish date: Tue, 30 Nov 2010, 10:36 AM
kltrader
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Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Research House: HWANGDBS



RHB Capital's (RHBCap) 15 per cent loan growth as at September 10 has met HwangDBS' financial year 2010 forecast.

Given the solid loan growth and lower provisions, it raised financial year 2010-2011(forecast) loan growth to 15-18 per cent from 12-15 per cent, HwangDBS said.

Our target price of RM10 assumes 5 per cent long term growth rate, 10.5 per cent cost of equity, and 16 per cent return on equity.

RHB Cap remains one of the cheapest large cap banks in Malaysia. - Reuters

 
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