We continue to like MBSB except whether they can control if there is a potential increase in loan quality issue. As most of the loan is government servants and back by EPF. Recent price drop with discounted cash call is a good option to further increase holdings. We recommend a full subscription with a mid to long term target price of RM 3 – 4. Still, it make no sense if EPF is not merging RHB and MBSB eventually.
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