Wednesday, November 27, 2013

BIMB result not bad, but share price upside only 7%

BIMB released its 9 months earnings this afternoon. Here's some of the highlights:

1. 9M13 earnings grow 19% YoY to RM219m. If we look at 3Q13 alone, the earnings growth is 25% YoY to RM75m. In its announcement to Bursa, BIMB mentioned that "The higher profitability was mainly achieved on the back of higher operating results of RM32.5m, and RM49.6m improvement in allowances for impairment on financing and advances, investment and other assets, as well as the non-recurrence of provision for contingent liability.
2. Considered not bad as it makes up 70% of consensus. Consensus looking at RM313m FY13E Full Year Earnings on average.
3. Only another 7% upside to go based on Consensus Target Price of RM4.82. Conclusion is good result, but if buy now should have limited upside. But not for sell also because it is still delivering satisfactory earnings growth.