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Wednesday, February 24, 2016

Maybank IB maintains hold on MPHB Capital

KUALA LUMPUR: Maybank Investment Bank Research has maintained its “hold” call on MPHB Capital Bhd with a revalued net asset value (RNAV) derived target price of RM1.63.

The research house said MPHB Capital’s financial year ended Dec 31, 2015 (FY15) core net profit of RM43mil was within its forecast of RM42mil.

“Exceptionals of about RM20mil in fourth quarter to Dec 31, 2015 included a net gain in the fair value of financial assets at the credit division and a RM7mil write-back in provisions previously made against its disputed piece of land at Jalan Imbi.

“51%-owned Multi-Purpose Insurans (MPI) contributed to 73% of group pretax profit. The partial loss in earnings to MPHB group reflects the disposal of a 49% stake in MPI to Generali from May 7, 2015,” Maybank said.

The research house said AFG’s Rawang, Phase 1 was fully sold with the exception of the Bumi lots and Phase 2 has yet to be launched.

However, it said no income was expected to accrue to MPHB from Phase 1, for the developer had paid in advance for the right to utilise the land.

The launch of its Penang development has been deferred in view of weak property demand while the Gombak land is up for sale.

Maybank said there were no plans in the pipeline for its land in Ampang and Jalan Imbi, while its legal suit with regard to its Pengerang land had yet to be heard in the Court of Appeal.

“Yet again, no dividend has been declared, given that Bank Negara’s approval has yet to be obtained. Management still awaits guidance on the computation of capital requirements for holding companies to assess the adequacy of capital at the holding company level,” it said.

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