MIB Research Summary - 24 Oct 2014

RPublic Bank: Upgrade to HOLD Results in line, upgrade to HOLD

Public Bank's 9M14 results were in line at 74% of our full-year forecast and consensus. Domestic loan growth within 10-11% target. NIM recovery is positive and is within expectations. Stock trades at a 3% discount to our TP – upgrade to HOLD with an unchanged TP of MYR19.20 (FY15 P/BV of 2.4x). Technicals: Rebound may stall at 1,815 to 1,831 The FBMKLCI rose 14.46 points to 1,810.68 yesterday, while the FBMEMAS and FBM100 also closed higher by 132.30 points and 117.15 points, respectively. We recommend a “Sell on Rallies” stance for the index. Trading idea is a Take Profit call on RSAWIT at MYR0.59 & MYR0.50.