HLIB Research positive on Maybank's Philippine turn
KUALA LUMPUR: HLIB Research has maintained its "buy" call on Malayan Banking Bhd with an unchanged target price of RM11.36.
This follows its move to sell its Philippine unit, Maybank ATR Kim Eng Financial Corp, for RM237.5 million to Mazy’s Capital Inc.
The research house said the disposal was a good move given that it is selling the listed shell, while retaining existing business units.
"This will enable the group to recoup some of its investment when it acquired Kim Eng group in Singapore, while retaining the business units will support its aspiration to become a regional banking group, as the Philippines is an important part of the Asean block," it said in a note today.
HLIB Research expects the disposal to have minimal impact on earnings but could boost its book value.
Maybank ATR said the disposal would pave the way for closer cooperation between the two remaining Maybank subsidiaries in generating revenue and streamlining management. -- BERNAMA