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More bullish on Public Bank's recovery


following the recent earnings result, which indicated the group was en route to recovery.
For the first quarter of 2021, the group s net profit was RM1.53mil, a 15.1% jump over the previous corresponding quarter.
MIDF Research, which maintained its buy call, said while the earnings recovery in 1Q was unsurprising, the pace of earnings growth was somewhat unexpected given the implementation of MCO2.0 in the quarter.
It added that this suggests the group will weather the recently imposed MCO3.0 and that its asset quality and conservative approach to its credit profile will mean it will weather the short-term stress.
With the expectation that the situation is turning around especially with the rollout of the Covid-19 vaccine and recovery in the GDP, we are maintaining our buy with revised TP of RM5.10 (from RM4.85) as we rollover our valuation to FY22, pegging its FY22 BPS to PBV of 2.0x, said MIDF. ....

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