Several catalysts. Earnings momentum will likely be moderate due to management's cautious stance, but there are several catalysts to the share price. These include a) potential FRS139 writebacks, b) the potential listing of Bank of Chengdu (BOC) and c) attempts at maximizing its s108 tax credits. Meanwhile, our FY12-13 ROE forecasts of 15+% are below management's target of 16-17% and any upside surprise is likely to emanate from cost savings, we believe. With these catalysts in mind, a higher P/BV is warranted. Our TP is raised to MYR14.60, pegged to a FY12 P/BV of 2.1x (1.7x previously) and we upgrade ourcall to a BUY.

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Source: Maybank Research - 9 July 2012