CIMB staged a breakout above Downward channel

The stock (CIMB 1023) has staged a breakout above its downward channel, accompanied by a high volume, signalling a potential resumption of the underlying uptrend.

CIMB

Trend dynamics are turning constructive, with improving momentum. 

“We expect further upside towards RM8.70 and RM9.30, while the stop-loss is set at RM7.45,” says analysts.

CIMB has shown consistent growth over the last five fiscal years, with revenue and net income peaking in 2025

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• Dividend yields remain high, especially when bolstered by special dividends. Management is happy with the current 55% level and will supplement this with special dividends to clear out excess capital
• ▲ Has shown convincing NOII expansion thus far, with their cross-selling capability slowly netting growth. 1QFY26 is slated to be a solid quarter
• ▲ Superb cost control seen in FY26, with further cost takeouts expected (though on a smaller scale)
• ► Relatively neutral on NIM prospects, though 1QFY26 faces a slight contraction. The Group should continue to benefit from the OPR cut as pricier FDs expire
• ► Tepid, mid-single-digit level loan growth expected. Asset growth (which factors in bond market funding) prospects are stronger, hence most growth should come in the form of NOII instead
• ► Thai segment restructuring is close to the end, and we should see ROE expansion eventually.
• Maintain BUY call: Revised GGM-TP of RM 9.71 (from RM9.78)