KUALA LUMPUR: CIMB Group Holdings Bhd received a neutral call with a target price of RM6.40 from PublicInvest Research as the Group's Thai unit's 1HFY17 net profit improved year-on-year (YoY) on the back of lower operating expenses and provisions.
"The results were also helped by improvements in net fee and service income (+21.5 per cent YoY) as it saw better contributions from its corporate finance, hire purchase and mutual fund businesses.
"We are encouraged by the improving fundamentals, particularly in the areas of cost and asset quality management," PublicInvest Research wrote in its company update report.
The research house said that, at the Group level, there remained scope for further earnings upsides particularly if its regional exposures make quicker-than-expected turnarounds.