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overall fundamental of the bank still strong. i think there will be no supprice on any additional impaired loan or missed forcast for RHB. selldown is mainly due to msrket sentiment. my personal opinion the price for this equity should be around RM5.8 and RM6.0 per piece, derive from its earning pershare and stable fundamental. However, the only set back was its dividend per share, which is considered low compared with other i.e may and cimb. so institute investor may not like this counter.
locally. Its debt tenure spread over 3 to more than 5 years, which provide some space to the company. With NTA of RM2 and order books of RM5.6 billion RM0.8 to RM1.3 is still a good buy. the company has a well diversify portfolio, while economy is slow its still can survive with its construction business, while time is good it will benefit from its property development and land banks. its also has recurrering income from its malls and hotel operations. above is my humble opinions.
overhang undold units, provision made for its projects in Qata may further pressure its bottom line. However, bright site of the company is its ability to continue secure construction projects locally. Despite the market over react on the "potential collective damage" after the recent changed of goverment, the fundamental of the company is still good. the company is a technical sound contractors which is able to deliver, hence i dont fell it will affect the company to continue to secure projects
My opinions:
Based on the latest AR u will notice that the bottom line of the company was made up by the revalueation of its JB Paradigm mall of RM250 million. Withou this its bottom line is in red and its CAO is at deficit of approximate RM25 million. Total Loans and debts stood at RM3.0 billion. in tandem with slow property market and excessive retail space i.e mall. It is quite challenge for the company to continue to be outperform the market. Interest expenses, low occupancy rate and
Most of its businesses are in downward trend. Especially its energy and cement business. bulk of the group's businesses are from Singapore and UK. outlook of these countries is not good due to briexist and slow growth rate. Furthermore its long term PPA contracts in Malaysia has ended and renewed with shorter term and lower rate. Debt ratio for the group is creeping up, market expect the debt cost will increase further in tandem with the end of quantum easing. So what you think?
