MBSB is still our top pick fair valued at RM 1.5 to RM 1.8

With yesterday announcement, MBSB will have an estimated 10 cents by 4th quarter of it’s income. For a 15 times PE it should valued at RM 1.5. The merging cost and conversion of loan to full Islamic may still cost them a few quarters. I expect should be fully ended plus some capital expenditure when moving to New product lines.

I think is not easy to compete with the big banks thus niche market grow is required.

Citing new products contribution, consistent loan grow and completion of impairment plus merging cost. MBSB Bank is still a buy for me. I do think there will be a easy factor to move it above two.

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