Wednesday, April 14, 2010

AmResearch keeps RHB Capital (1066.KU) at Buy, with unchanged target price of MYR7.20

AmResearch keeps RHB Capital (1066.KU) at Buy, with unchanged target price of MYR7.20; says banking group maintaining loans growth momentum, confident of achieving 15% growth in FY10; notes upside potential from bancassurance tie-up, following exclusive agreement with TM Asia to sell life insurance products for 10 years; RHB Capital intends to maintain dividend policy of 30% of net earnings. "There is a good chance RHB Capital may turn into a strong dividend paying stock over the longer-term," house says; adds despite recent rise, stock still "deeply undervalued" at 1.5X book value vs sector average of 2.0X. Stock +0.8% at MYR6.00.

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