RHB Capital still remains an Add by CIMB Research

KUALA LUMPUR: CIMB Equities Research said RHB Capital’s 1H15 net profit met expectations at 47% of its full-year forecast and 49% of consensus.

However, it reduced the target price by 10% to RM9 from RM10 after applying a 10% discount to its dividend discount model value (cost of equity of 11.8%; long term growth of 4%) given the weaker market sentiment amidst heightened external risks.