CIMB; Hold
Price Target: RM7.80; CIMB MK

CIMB Group plans to list on Stock Exchange of Thailand (SET) by 4Q this year. It has expressed its intention for a dual listing since 2010 but several concerns such as differences in listing rules and unresolved double taxation issue had caused the delay. The Group CEO, Datuk Seri Nazir Razak said the listing plan will proceed this year after the issues are ironed out.

CIMB’s exposure in Thailand is through its 93.7%-owned subsidiary, CIMB Thai, which currently contributes 4% of CIMB Group’s pre-tax profit, 7% of loan book and 6% of deposits. The proposed listing of CIMB Group on the SET will provide an opportunity for Thai investors to participate in CIMB Group’s journey as a South East Asian banking franchise. CIMB is expected to announce its 1Q2013 results on 22 May. Maintain Hold on CIMB Group and RM7.80 TP.

Source: HwangDBS Research - 18 Apr 2013