HDVR maintains buy on Public Bank at RM12.20

KUALA LUMPUR: Hwang DBS Vickers Research is maintaining its Buy call on Public Bank with a RM12.20 target price as it expects the bank to meet its loan growth target.

It said on Monday, Jan 18 the FY09 net profit, which should be announced this week, could come in at 2% to 3% above its and market projections.

"The result should reinforce the Group as among the most leveraged to an economic recovery - strongest loans growth (14%), top 3 market share in mortgages and HP, and lowest NPL (0.9%)," it said.

Hwang DBS Vickers Research said the projected final 46 sen DPS translates into 4.0% gross dividend yield. Full year net yield of 5.0% is highest in the sector.

"Maintain Buy. In our opinion, concerns about the new Basel rules are excessive. The rules are still being discussed and scheduled to be finalized only at end-2010. Our RM12.20 target price implies 5% capital appreciation and 5% dividend yield for a total return of 10%," it said.

Public Bank '09 earnings may beat forecast

Public Bank Bhd, Malaysia’s third biggest bank, may report 2009 earnings that exceeded “market projections,” HWANGDBS Vickers Research said in a report today.

“The results should reinforce the group as among the most leveraged to an economic recovery,” the research house said in a report today. Public Bank will likely meet its loan growth target, it said. -- Bloomberg