Maintain Buy. BIMB's 2011 recurring net profit of RM188m (+20% YoY) was within our expectations, but above consensus by about 10%. We continue to like BIMB for exposure to 51%-owned Bank Islam which has been on a stable growth path since its restructuring in 2009, and an undervalued takaful operator, 65%-owned Syarikat Takaful (Takaful). On rolling forward valuations and applying a higher P/BV of 1.3x (from 1.2x) to Bank Islam on a higher expected 2012 ROE of 12%, and 1x P/BV for Takaful, our SOP-based TP is raised to RM2.40 (+17%).

Maybank Research 29 Feb 2012

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