May 24, 2010

EONCAP stock code 5226

EON Capital (RM6.92; Hold; Price Target: RM7.30)
Lower overheads and taxes lift earnings
•  1Q10 net profit of RM97.8m (+59% q-o-q) was within our and market expectations
•  Net interest income inched up 1% q-o-q, but lower overheads (-15% q-o-q) and tax expense (-16% q-o-q) boosted net earnings
•  Maintain Hold and RM7.30 TP.

by HWDBS Vickers

EONCap Group is involved in commercial banking, merchant banking, finance company business and nominee and custodian services.