Investor on the Street

RHBBANK (1066): Really Hot Buy?

Publish date: Sat, 10 Sep 2022, 12:12 AM

RHBBANK (1066) is a Main Market company in the Financial Services segment. 

RHBBANK is a local bank many are familiar with.

Is RHBBANK selling at cheap price now?


1. Share price you pay now is less than Price to Book. 

RHBBANK's share price is RM 5.76, whilst its net assets is about RM 6.42.


2. Best performance in FY2021.

RHBBANK's revenue hit all-time high in 2019, net profit hit all-time high in 2021, yet share price all-time high was in 2022 around RM6. Since 2013, RHBBANK achieved consecutive revenue per quarter of RM2 bil.


3. Financial Statements. 

Cannot use cash flow from operations to value banks. Revenue and net profit growth have been steady in past 10 years.


4. Insider dealings.

1.7.2022 Director Ong Ai Lin bought 502 shares at around RM 5.747.

Very hard to tell whether insiders think the company is undervalued.


5. PE ratio is around 9.

RHBBANK's trailing PE ratio is considered low, for an established company with strong track record. Almost 5 years low PE. Further, RHBBANK is a constituent of FBM KLCI.

I don't have shares in RHBBANK. Averaging net profit to shareholders over the past 20 quarters, (581mil/quarter) with PE ratio of 15, RHBBANK should be worth RM 8.28. When will RHBBANK Rise High Boldly?

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Value Investor Coo1eo

you write and study so much the financials. so much positive, yet you do not own any shares?
put your money where your mouth is!

2022-09-11 11:57

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