Friday 29 Mar 2024
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KUALA LUMPUR (Nov 26): CIMB Group Holdings Bhd shares fell as much as six sen or 1.3% after the financial-services entity reported a 10% drop in third quarter net profit from a year earlier. 

Yesterday, CIMB said net profit fell to RM803.89 million in the third quarter ended Sept 30, 2015 (3QFY15) from RM890.27 million. Revenue rose to RM3.84 billion from RM3.53 billion.

9MFY15 net profit dropped to RM2.02 billion from RM2.91 billion a year earlier. Revenue was higher at RM11.35 billion versus RM10.47 billion.

Today, CIMB shares fell to its lowest so far at RM4.54. At 9:24am, the stock cut losses at RM4.55 for a market capitalisation of RM38.8 billion.

At 9:59am, the stock saw some two million shares done.
 
Public Investment Bank Bhd research head Ching Weng Jin said in quarterly terms, CIMB's 3QFY15 net profit growth indicated the group's recovery had continued.

But Public Investment was also mindful of the impact from CIMB's employee mutual separation scheme (MSS) on the group's financials.

"Our FY15 earnings estimates are cut by 19.2% to factor in the MSS and restructuring costs previously unaccounted for. FY16/17 numbers are largely unchanged.

"Nonetheless, we are starting to see value again at current levels and upgrade our call to Trading Buy as (we) anticipate further operational improvements in the subsequent quarters on traction made by its T-18 initiatives. Our target price of RM5.70 is unchanged," Ching said. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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