HLBANK Analysis:-
Excel – http://1drv.ms/1IvxKgL
Notes – http://tinyurl.com/mg9coed
My View:-
Valuation:
Absolute P/B Valuation
Trailing:
FY14 (BPS: 8.249) – Fair value 15.31 (Fair Value Uncertainty: HIGH)
R4Q (BPS: 8.66) – Fair value 16.07 (Fair Value Uncertainty: MEDIUM)
Forward:
FY15 (BPS: 8.534) – Fair value 15.84 (Fair Value Uncertainty: MEDIUM)
FY16 (BPS: 9.247) – Fair value 17.16 (Fair Value Uncertainty: MEDIUM)
BPS applied to reach the current stock price (14.02): 7.555
HLBANK has always been conservative in growing its loans and advances. With its stringent credit policies, the bank’s appetite for mostly high quality borrowers and secured-type lending has caused the bank to lag its peers in terms of loans growth.
Perhaps, HLBANK can be more aggressive because its loan-to-deposit ratio is only close to 80%, which is below industry average.
I am still new to HLBANK, and need to do more homework. At high level, I think HLBANK has potential to be the next PBBANK.
Latest Financial – Q2 2015 Financial Report (25 Feb 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4185401
At the time of writing, I did not own shares of HLBANK.
HLBANK (5819)
