DRBHCOM (BUY) - Interested Party on DRB’s Uni.Asia

Date: 
2012-08-16
Firm: 
HLG
Stock: 
DRBHCOM
Price Target: 
3.43
Price Call: 
BUY
Last Price: 
0.995
Upside/Downside: 
+2.435 (244.72%)

DRBHCOM (BUY)

Interested Party on DRB’s Uni.Asia

  • DRB-Hicom has received approval from Bank Negara Malaysia to assume preliminary negotiations for its 51% stake in Uni.Asia Capital.
  • We are positive on DRB’s move to dispose the conventional insurance businesses, indicating DRB’s next step in streamlining its group business.
  • We have ascribed 1.5x P/B for the insurance business, which arrives at RM301.5m for DRB’s effective stakes or RM0.16/share (before holding company discount of 20%) to the group.
  • However, DRB is likely to realize higher valuation (vs HLIB’s) if based on previous insurance company transaction of 1.36x to 3.35x P/B.
  • Maintain BUY with unchanged Target Price of RM3.43

Source: Hong Leong Investment Bank Research - 16 August 2012

Discussions
2 people like this. Showing 5 of 5 comments

herbert456

Excellent!!

2012-08-16 23:37

kcfan

Must keep for future explore and the best with you.

2012-08-16 23:38

wantocin

bank muamalat......affin

2012-08-17 00:39

wantocin

im newbie inthis forum but i involve in share market since 1983.

2012-08-17 00:41

reshkumar

2mrw sure will break 2.6

2012-08-17 01:08

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