'BIMB move to unlock value likely to be re-rating catalyst'
KUALA LUMPUR: BIMB Holdings Bhd's potential corporate move to unlock the value of the group could act as its re-rating catalyst, Kenanga Research said.
Kenanga Research said the unique positioning of BIMB Holdings in the Islamic banking and takaful areas should enable the group to deliver a faster balance sheet growth than other commercial banks.
The research house said this is due to the growth opportunities arising from Malaysia's ongoing development of Islamic banking.
"On the operating side, we believe its 12 per cent return-on-equity target is highly achievable despite the current gloomy environment," it said in a research note yesterday.
It expects BIMB Holdings to achieve an asset quality similar to its peers in two to three years on better management of its assets, adding a progressive reduction in credit costs may also boost its profitability.
The research house has maintained an "outperform" valuation on the company with a target price of RM3.60. Bernama
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