MBSB – a simple target

If anyone would follow the history of this bank in the last 3 years. Profit is about back to its normalization. When impairment end this year. Per quarter profit should be around 150 – 200 Mil. That will be approximately 2.5 to 3.5 cents. Annual profit around 10 to 14 cents. The current price PE will be 8 to 10 times.

Via a new banking license, cost of fund become cheaper and more products can be launched. A syariah based credit card and etc? Even a normal loan growth of 6 to 8% on current 70/30% portfolio will be good enough to drive profit to above 15 cents in 2018.

A potential or write back of impairment as mentioned by its CEO that 80% us recoverable. That can be a great surprise.

I don’t kno2 why the stock performance still lack of interest when 75% still hold by EPF and CMY. To me it is a simple mathematics this stock price must grow except unexpected event not related to financial happened.

It is a growth stock, it is stable, it is objective oriented, it is a dividend stock if maintain 3 cents payout.

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