HLBANK – Fundamental Analysis (12 May 2015)

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.


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