[%duyT%]
Research by Maybank
Buy (Prior: Hold) – TP RM3.02

“Windfall for civil servants a boon for RCE"

With civil servants’ salaries set to rise by ≥13% on 1 Dec 2024, we raise our post-FY24E EPS/DPS estimates by up to 10%/9%. We also raise our P/B target to 2.5x on end-CY25E BVPS (full year impact of salary raise) from 2.1x on end-CY24E BVPS, thus lifting our TP to MYR3.02 from MYR2.44; the re-rating to reflect stronger earnings and dividend prospects. As a sanity check, our FY26E DPS of 18.5sen divided by the CY25E average banking sector dividend yield of 6.0% (Fig. 5) returns an implied TP of MYR3.08.

Analyst:
Yin Shao Yang
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$KLSE-RCECAP
Research by Maybank
Buy (Prior: Hold) – TP RM3.02

“Windfall for civil servants a boon for RCE"

With civil servants’ salaries set to rise by ≥13% on 1 Dec 2024, we raise our post-FY24E EPS/DPS estimates by up to 10%/9%. We also raise our P/B target to 2.5x on end-CY25E BVPS (full year impact of salary raise) from 2.1x on end-CY24E BVPS, thus lifting our TP to MYR3.02 from MYR2.44; the re-rating to reflect stronger earnings and dividend prospects. As a sanity check, our FY26E DPS of 18.5sen divided by the CY25E average banking sector dividend yield of 6.0% (Fig. 5) returns an implied TP of MYR3.08.

Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com