Malaysian Banks
Limited downside risk

Business loan application and approval rates are recovering. Expect more tightening measures in 2014 Budget but minimal impact on loan growth. Credit costs have bottomed out, but not NIMs. RHBC remains the cheapest bank in our universe.

Public Bank; Hold; RM18.46
Price Target: RM18.00; PBKF MK
Stable NIM; tighter lending requirements

3Q13/9M13 results were within our and consensus estimates; NIM stabilised. NPL uptick in hire-purchase and mortgages due to tighter lending requirements; NPL ratio for these segments were still low at 0.6-0.8%. Maintain HOLD and RM18.00 TP.

Malaysia Marine and Heavy Engineering; Fully Valued; RM3.87
Price Target: RM3.20 (prev RM3.30); MMHE MK
Weak quarter

3Q13 below our expectations despite offshore boost. Earnings visibility remains weak. Maintain Fully Valued with RM3.20 TP.

Source: HwangDBS Research - 23 Oct 2013