RHB Capital (RM5.98; Buy; Price Target: RM7.30; RHBC
MK)
Lagging the laggards
• Laggard among Malaysian banks that offers solid value
proposition at 1.2x FY11F BV with c.15% ROE
• Beneficiary of interest rate hikes; every 25bps lifts
earnings by c.7%
• Maintain Buy, TP raised to RM7.30. RHB Cap is the
cheapest stock in our Malaysia large cap universe at 8x
forward PE
source: HWDBS vickers