COMMENTS ON BIMB HOLDINGS BERHAD (5258)

BIMB HOLDINGS BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2017 annual report.

1.       GENERAL INTRO: This counter core business is in banking, through Bank Islam Malaysia Berhad.

2.       NOTABLE POINTS:

a.    Malaysia's first Islamic bank, have 147 branches and 1117 ATM, also operate Takaful insurance and shariah-compliant stockbroking. With more than 5000 employees and 9 million customers.

b.   last five  years return on equity, is steady and range from 20.76 to 26.14%

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 3715 million in 2017 annual report, this is a high revenue company.

b.      SHARE PRICE: share price is around RM4 in last few years, no significant growth.

c.       EARNING PER SHARE (EPS): is steady and slightly increasing, last 5 years are 25.84, 35.64, 35.53, 35.25, 37.94cents, respectively.

d.      FUTURE POTENTIAL: need to remain competitive compared to other major banks in Malaysia.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 45.7 million, around 0.07% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2017 report, dividend yield around 3.89%, 14cent per share

b.      CONSISTENCY: dividend payout is quite consistent, last five years are 12, 14.7, 12.2, 13, 14 cents per share, respectively.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 5966 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: strongly supported by institutional investors, top 30 major shareholders include Lembaga Tabung Haji, EPF, Permodalan Nasional Berhad and Amanah Saham Bumiputra, which hold a total of ~78% of total shares. Also included few investment funds.

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