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The Star
6 days ago
- Business
- The Star
Analysts offer mixed outlook on RHB
PETALING JAYA: RHB Bank Bhd's prospects for the rest of the financial year appear balanced between resilience and caution, as analysts weigh solid fundamentals against macroeconomic uncertainties following the group's first-quarter results. Despite a 2.7% year-on-year rise in net profit to RM750.03mil for the three months ended March 31, 2025 (1Q25), brokerages are mixed in their outlook, citing slower gross domestic product (GDP) growth projections, credit cost risks and muted non-interest income (NOII) as key variables. Hong Leong Investment Bank (HLIB) Research noted that RHB has revised its loan growth guidance to 5%-6% from 6%-7%), in response to revised GDP growth expectations now 4.5% against 5%. Nevertheless, net interest margin (NIM) guidance remains intact, expected to be flat to +4 basis points (bps), excluding any overnight policy rate (OPR) cut, underpinned by concrete efforts to ease funding cost pressures through portfolio rebalancing, Singapore deposit rate repricing and leveraging statutory reserve ratio (SRR) liquidity, it said. HLIB maintained a 'buy' rating with an unchanged target price of RM7.70, calling the stock attractive at 0.88 times price-to-book (P/B) due to a dividend yield of 6.7%. TA Research was similarly upbeat, reiterating a 'buy' and raising its target price to RM7.52 from RM7.00. It highlighted that 'management remains cautiously optimistic about the outlook for 2025', with credit cost guided at 15–20bps and return on equity (ROE) forecast at 10.4%–10.8%. The bank's focus on mitigating risks through early restructuring efforts was also noted, especially for small and medium enterprises (SME) exposures, with RHB proactively engaging with potentially affected borrowers and has reinforced its early restructuring and rescheduling (R&R) initiatives. TA also underscored stable NIM expectations of 1.86% to 1.90%, aided by the recent SRR cut and an improving current-account-savings-account (CASA) ratio. However, Maybank Investment Bank (MaybankIB) Research struck a more cautious tone, revising its call to 'hold' from 'buy' and cutting its target price to RM7.10 from RM7.70. It stated that 'RHB's 1Q25 core net profit was below expectations, largely on account of lower-than-expected NOII'. Reflecting a weaker macroeconomic backdrop, MaybankIB has cut its 2025-2027 earnings for RHB by 8%-9%, largely to factor in slower economic growth, a potential rate cut and lower NOII, and added that it has raised credit costs by 20% from 3bps. CIMB Research, meanwhile, maintained a 'buy' call with an unchanged target price of RM7.50, asserting that dividend yield will likely remain close to 5.5%, even under a more stressed scenario. It believes key catalysts for RHB include 'higher-than-expected NIM, better asset quality, higher-than-expected loan growth, and sustained dividend payout'. However, it warned of downside risks from 'higher-than-expected cost of funds' and 'uptick in impaired loans'. The bank's key performance index targets for 2025 include ROE of 10.4%–10.8%, loan growth of 5%–6%, NIM of 1.86–1.90%, and a dividend payout ratio of 30%–50%. Credit cost is expected to be kept within 15–20bps, while the cost-to-income ratio is guided at 45.5–46%. For 1Q25, RHB reported revenue of RM4.39bil, marginally lower than RM4.40bil in the previous year. Net profit of RM750.03mil was up from RM730.17mil previously.
Malaysian Reserve
19-05-2025
- Business
- Malaysian Reserve
Bursa Malaysia ends lower in line with regional markets
KUALA LUMPUR — Bursa Malaysia ended lower on Monday, mirroring the lacklustre performance across Asia as weak Chinese economic data and the recent downgrade of the United States' sovereign credit rating weighed on regional market sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 15.61 points, or 0.99 per cent, to 1,556.14 from Friday's close of 1,571.75. The benchmark index opened 5.18 points lower at 1,566.57 and fluctuated between 1,550.93 and 1,566.57 throughout the trading session. In the broader market, losers thumped gainers 889 to 216, while 384 counters were unchanged, 906 untraded and 17 suspended. Turnover increased to 3.71 billion units worth RM2.27 billion versus last Friday's 2.91 billion units worth RM2.16 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng believed the selldown offers an opportunity to bargain hunt stocks at lower levels. 'We reckon it is time to accumulate blue chips with strong dividend yields, such as banks and utilities, for a better defensive approach. As such, we anticipate the benchmark index will trend within the range of 1,550-1,580 for the week,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said despite the selling pressure, trading activity remained robust. He noted that trading volume reached 3.7 billion shares, slightly above the average, suggesting that underlying market participation remains healthy despite the broader risk-off tone. 'We remain cautiously optimistic. While near-term risks persist, we view today's sell-off as temporary. The pullback may present a tactical buying opportunity for bargain hunters, particularly in fundamentally sound sectors that have been indiscriminately sold down. 'Malaysia's solid external fundamentals and sustained foreign direct investment flows continue to provide an anchor of stability amid broader volatility,' Mohd Sedek told Bernama. Among heavyweights, Maybank was flat at RM10.14, Public Bank eased one sen to RM4.49, TNB shed 10 sen to RM14.10, CIMB fell by 8.0 sen to RM7.10, CIMB was 8.0 sen lower at RM7.10 and IHH Healthcare lost 2.0 sen to RM6.99. For active stocks, NexG and Harvest Miracle were flat at 37.5 sen and 18 sen, respectively. SFP Tech trimmed 2.5 sen to 23 sen, Nationgate fell by 8.0 sen to RM1.61, Tanco slipped half-a-sen to 94 sen, and MYEG shed 2.5 sen to 89.5 sen. On the index board, the FBM Emas Index dropped 152.70 points to 11,593.34, the FBMT 100 Index slid 141.88 points to 11,350.82, and the FBM Emas Shariah Index lost 186.19 points to 11,487.99. The FBM 70 Index lost 316.70 points to 16,385.71, and the FBM ACE Index was 118.92 points easier at 4,646.94. Across sectors, the Financial Services Index gave up 128.65 points to 18,359.0, the Industrial Products and Services Index eased by 3.18 points to 156.50, the Energy Index shed 21.88 points to 707.50, and the Plantation Index slipped 59.50 points to 7,326.09. The Main Market volume increased to 1.46 billion units valued at RM1.92 billion versus 1.40 billion units valued at RM1.90 billion last Friday. Warrants turnover widened to 1.81 billion units worth RM1.92 billion from 1.09 billion units worth RM134.46 million previously. The ACE Market volume rose to 443.55 million units worth RM139.15 million from 415.63 million units valued at RM123.51 million. Consumer products and services counters accounted for 229.55 million shares traded on the Main Market, industrial products and services (280.98 million), construction (95.28 million), technology (251.63 million), SPAC (nil), financial services (62.22 million), property (190.16 million), plantation (17.54 million), REITs (11.09 million), closed/fund (9,500), energy (126.91 million), healthcare (57.96 million), telecommunications and media (50.32 million), transportation and logistics (37.0 million), utilities (53.0 million), and business trusts (23,100). — BERNAMA
The Star
19-05-2025
- Business
- The Star
Bursa Malaysia ends lower in line with regional markets
KUALA LUMPUR: Bursa Malaysia ended lower on Monday, mirroring the lacklustre performance across Asia as weak Chinese economic data and the recent downgrade of the United States' sovereign credit rating weighed on regional market sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 15.61 points, or 0.99 per cent, to 1,556.14 from Friday's close of 1,571.75. The benchmark index opened 5.18 points lower at 1,566.57 and fluctuated between 1,550.93 and 1,566.57 throughout the trading session. In the broader market, losers thumped gainers 889 to 216, while 384 counters were unchanged, 906 untraded and 17 suspended. Turnover increased to 3.71 billion units worth RM2.27 billion versus last Friday's 2.91 billion units worth RM2.16 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng believed the selldown offers an opportunity to bargain hunt stocks at lower levels. "We reckon it is time to accumulate blue chips with strong dividend yields, such as banks and utilities, for a better defensive approach. As such, we anticipate the benchmark index will trend within the range of 1,550-1,580 for the week,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said despite the selling pressure, trading activity remained robust. He noted that trading volume reached 3.7 billion shares, slightly above the average, suggesting that underlying market participation remains healthy despite the broader risk-off tone. "We remain cautiously optimistic. While near-term risks persist, we view today's sell-off as temporary. The pullback may present a tactical buying opportunity for bargain hunters, particularly in fundamentally sound sectors that have been indiscriminately sold down. "Malaysia's solid external fundamentals and sustained foreign direct investment flows continue to provide an anchor of stability amid broader volatility,' Mohd Sedek told Bernama. Among heavyweights, Maybank was flat at RM10.14, Public Bank eased one sen to RM4.49, TNB shed 10 sen to RM14.10, CIMB fell by 8.0 sen to RM7.10, CIMB was 8.0 sen lower at RM7.10 and IHH Healthcare lost 2.0 sen to RM6.99. For active stocks, NexG and Harvest Miracle were flat at 37.5 sen and 18 sen, respectively. SFP Tech trimmed 2.5 sen to 23 sen, Nationgate fell by 8.0 sen to RM1.61, Tanco slipped half-a-sen to 94 sen, and MYEG shed 2.5 sen to 89.5 sen. On the index board, the FBM Emas Index dropped 152.70 points to 11,593.34, the FBMT 100 Index slid 141.88 points to 11,350.82, and the FBM Emas Shariah Index lost 186.19 points to 11,487.99. The FBM 70 Index lost 316.70 points to 16,385.71, and the FBM ACE Index was 118.92 points easier at 4,646.94. Across sectors, the Financial Services Index gave up 128.65 points to 18,359.0, the Industrial Products and Services Index eased by 3.18 points to 156.50, the Energy Index shed 21.88 points to 707.50, and the Plantation Index slipped 59.50 points to 7,326.09. The Main Market volume increased to 1.46 billion units valued at RM1.92 billion versus 1.40 billion units valued at RM1.90 billion last Friday. Warrants turnover widened to 1.81 billion units worth RM1.92 billion from 1.09 billion units worth RM134.46 million previously. The ACE Market volume rose to 443.55 million units worth RM139.15 million from 415.63 million units valued at RM123.51 million. Consumer products and services counters accounted for 229.55 million shares traded on the Main Market, industrial products and services (280.98 million), construction (95.28 million), technology (251.63 million), SPAC (nil), financial services (62.22 million), property (190.16 million), plantation (17.54 million), REITs (11.09 million), closed/fund (9,500), energy (126.91 million), healthcare (57.96 million), telecommunications and media (50.32 million), transportation and logistics (37.0 million), utilities (53.0 million), and business trusts (23,100). - Bernama
Barnama
30-04-2025
- Business
- Barnama
Bursa Malaysia Remains Higher At Mid-Morning
KUALA LUMPUR, April 30 (Bernama) -- Bursa Malaysia remained higher at midmorning with continuous buying in financial services and healthcare sectors. At 11 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.76 points to 1,523.32 from yesterday's close of 1,515.56. The benchmark index had initially gained 2.51 points, opening at 1,518.07. Market breadth was positive, with 350 gainers outpacing 298 decliners; 399 counters were unchanged, 1,372 untraded, and 96 suspended. Turnover stood at 1.01 billion shares worth RM451.23 million. Among the heavyweights, CIMB perked up eight sen to RM7.10, IHH Healthcare rose seven sen to RM6.94, Maybank and Public Bank added two sen each to RM9.97 and RM4.45, respectively, and Tenaga Nasional climbed four sen to RM13.68. As for the actives, Richtech Digital gained two sen to 30 sen, Nationgate recouped five sen to RM1.33, Velesto rose by half-a-sen to 15.5 sen, while Kinergy Advancement was flat at 32.5 sen, and Tanco Holdings was down half-a-sen to 87.5 sen. On the index board, the FBM Emas Index advanced 47.97 points to 11,322.38, the FBMT 100 Index increased 49.33 points to 11,094.29, the FBM Emas Shariah Index jumped 44.26 points to 11,161.99, the FBM 70 Index garnered 42.15 points to 15,947.14, while the FBM ACE Index was 5.42 points higher to 4,623.52. Sector-wise, the Financial Services Index soared 81.60 points to 18,181.71, the Industrial Products and Services Index firmed 0.40 of-a-point to 149.32, the Energy Index gained 5.24 points to 683.20, and the Plantation Index put on 22.97 points to 7,185.32.
