KUALA LUMPUR, Aug 5 – Two research houses have maintained their “buy” call on Malayan Banking Bhd (Maybank), following the statement by the new Chief Executive Officer Datuk Abdul Farid Alias that his focus is to expand its presence in Asean and raise overseas profit contribution to 40 per cent by 2015 from 30 per cent currently.
“This can only be achieved via acquisition, although not necessarily in Thailand.
“Thailand is not new as it is already the largest banking group in Malaysia, thus offshore expansion is a natural progression,” Hong Leong Investment Bank (HLIB) said in a note today.
The research house said the group’s commercial banking presence in Thailand is relatively small despite it being the largest broker.
HLIB maintained its “buy” call on Maybank with a target price (TP) of RM11.36.
“Its earnings growth momentum is gaining traction and we believe the newly-appointed CEO is likely to enhance and expedite the expansion rather than derail the trajectory, especially when he is an internal candidate,” HLIB said.
RHB Research, on the other hand, retained its “buy” call on Maybank with a TP of RM11.40.
“While we do not anticipate any major shift in the group’s strategic direction, we do not discount some tweaks in strategy,” said RHB Research.
Abdul Farid said he would make further remarks on his plans at the bank’s second quarter result announcement on Aug 21.
– BERNAMA
