Apr 14, 2010

RHBCAP RM7.30 target price

RHB Capital (RM5.98; Buy; Price Target: RM7.30; RHBC

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