MIDF Research maintains Affin target price of RM4.10 (5185)

KUALA LUMPUR: MIDF Equities Research is maintaining its target price of RM4.10 for Affin Holdings while valuation remains undemanding with price-to-book value (PBV) ratio of 1.0 times based on FY13 book value per share.
“We
are projecting ROEs (return on equity) of 9.4% and 9.6% for FY12 and
FY13 respectively. There is no change to our TP despite of the slight
of the adjustment in our forecast,” it said on Wednesday.
It said Affin's
net profit for the second quarter ended June 30, 2012 (Q2, FY2012) was
RM140.8mil (down 15.2% on-quarter; up 4.9% on-year). The group's H1FY12
net profit of RM306.9mil (up 27.7% on-year) accounted for 58.7% of its
forecast and 55.0% against consensus.
“Annualised ROE for H1FY12
of 10.7% was ahead of its FY12 ROE target of 9.6% while its annualised
ROA (return on assets) was 1.1%,” it said.
MIDF Equities
Research said on a year on year basis, the improved H1FY12 results came
from higher net interest income (up 2.7% on-year to RM449.3mil),
increase in non interest income (up 21.1% on-year to RM193.0mil), a
write back on loan impairment of RM6.6mil (H1, FY11: a charge for loan
impairment of RM26.0mil) and higher share of profits from associate of
RM21.3mil (H1FY11: profit of RM2.0mil).

+1 we will ride Affin hard when the start of the uptrend again

Yes affin, good note, reps for the return of the newscaster!