COMMENTS ON MALAYAN BANK BERHAD (1155)

FIGURE 1: MALAYAN BANK 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. Maybank is the largest bank in Malaysia.

2.       NOTABLE POINTS:

a.       22 million customers worldwide

b.      adopts a dividend policy with a Dividend Payout Ratio of between 40% to 60% of full year earnings attributable to shareholders. In last few years pay up to 78% of earnings to shareholders as dividend.

c.       Maybank is a TOP 500 Most Valuable Gloal Brand, first Malaysian bank to break into the Global 500 Brands list by Brand Finances, with a brand value of USD 4.2 billion

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~47320 million in 2018 annual report, this is a high revenue company.

b.      SHARE PRICE: share price in last few years is steady, range from RM7.60 to ~RM11.00.

c.       EARNING PER SHARE (EPS): earning per share in last 5 years were fluctuating, EPS were ranging from 67.2 to 74.2 sen per share.

d.      FUTURE POTENTIAL/PROSPECTS: very dependable and reliable counter, share price will not fluctuate too much.

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 291 million, around 0.02% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, Maybank declared a total dividend payout of 57 sen per share, amounts to dividend yield of 6.73 % based on current share price.

b.      CONSISTENCY: very consistent dividend payout, last five years (2014-2018) dividends declared range from 52 to 57 sen per share.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around RM 57058 million, equivalent to RM 5.15 per share

b.      SUPPORT BY INSTITUTIONAL INVESTORS: this counter is well supported by institutional investors, there are 29 institutional investors at top 30 major shareholders list, including EPF (12.62%), Skim Amanah Saham Bumiputera (35.05%), Permodalan Nasional Berhad (7.08%), Kumpulan Wang Persaraan, FELDA and few insurance companies and investment funds.

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