COMMENTS ON CIMB GROUP HOLDINGS BERHAD (1023)

FIGURE 1: CIMB GROUP HOLDINGS BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2018 annual report.

1.       GENERAL INTRO: This counter core business is on various banking services. CIMB Bank is one of the major banks in Malaysia.

2.       NOTABLE POINTS:

a.       serving total of 14 million+ customers in 16 countries

b.      adopts a dividend policy with a Dividend Payout Ratio of 40-60% of full year earnings attributable to shareholders, achieved 42.4% payout in 2018

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~17381 million in 2018 annual report, this is a high revenue company.

b.      SHARE PRICE: share price in last few years fluctuated from ~RM5 to ~RM8.50.

c.       EARNING PER SHARE (EPS): earning per share in last 5 years were on increasing trend, EPS were increasing from 37.5 to 59.7 sen per share.

d.      FUTURE POTENTIAL/PROSPECTS: very dependable and reliable counter, share price expected to be stable.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 922 million, around 0.17% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, CIMB Bank declared a total dividend payout of 25 sen per share, amounts to dividend yield of 5.17 % based on current share price.

b.      CONSISTENCY: consistent dividend payout, last five years (2014-2018) dividends declared range from 15 to 25 sen per share.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around RM 32405 million, equivalent to RM 3.39 per share

b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is well supported by institutional investors, there are 30 institutional investors at top 30 major shareholders list, including EPF (13.71%), Skim Amanah Saham Bumiputera (4.96%), Permodalan Nasional Berhad (0.42%), Kumpulan Wang Persaraan (6.72%), Khazanah Nasional Berhad (26.8%), SOCSO (0.31%) and few insurance companies and investment funds.

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