UOB Kay Hian has maintained its “buy” call on CIMB at RM4.90 per share based on 0.8 times FY20 price-to-book and 8% return on equity. “We think that most of the negatives have been priced in and the stock is further supported by a dividend yield of 6.4%, ” it said.Shares in CIMB closed 3% lower to RM3.49 yesterday.
PETALING JAYA: CIMB Group
Holdings Bhd’s loan exposure in troubled Singapore-based Hin Leong Trading (Pte) Ltd is less than 1% of the group’s book value, said UOB KayHian Research.
The research said CIMB may have already made some provisions related to Hin Leong’s account due to the low oil prices.
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