AMBANK (1015) : Affin Hwang maintains Sell on AMMB
KUALA LUMPUR: Affin Hwang Research has maintained its Sell call on AMMB Holdings with a target price of RM5.90 pegged at 1.15 times P/B multiple target.
In a note on Thursday, the research house said it believed that AMMB's stock is overvalued.
"Meanwhile, we keep our FY15-17E forecasts unchanged, holding on to our view that in 2HFY15, AMMB’s credit cost will remain above 20bps (annualised).
"Competition for deposits and declining asset yields (as AMMB shifts focus to the higher-end customer segment) will continue to put further pressure on net interest margins (NIM), which stood at 2.49% for 1HFY15 (1HFY14: 2.63%)," it said.
Affin Hwang Research added that a significant gain on disposal of RM207.6mil arising from the disposal of its insurance stakes underpinned AMMB’s 1HFY15 reported net profit, which would otherwise have been 3.9% lower on-year.
The research house said AMMB's 1HFY15 results were above Affin Hwang's expectations by 11% but 6.5% below consensus.
http://www.thestar.com.my
KUALA LUMPUR: Affin Hwang Research has maintained its Sell call on AMMB Holdings with a target price of RM5.90 pegged at 1.15 times P/B multiple target.
In a note on Thursday, the research house said it believed that AMMB's stock is overvalued.
"Meanwhile, we keep our FY15-17E forecasts unchanged, holding on to our view that in 2HFY15, AMMB’s credit cost will remain above 20bps (annualised).
"Competition for deposits and declining asset yields (as AMMB shifts focus to the higher-end customer segment) will continue to put further pressure on net interest margins (NIM), which stood at 2.49% for 1HFY15 (1HFY14: 2.63%)," it said.
Affin Hwang Research added that a significant gain on disposal of RM207.6mil arising from the disposal of its insurance stakes underpinned AMMB’s 1HFY15 reported net profit, which would otherwise have been 3.9% lower on-year.
The research house said AMMB's 1HFY15 results were above Affin Hwang's expectations by 11% but 6.5% below consensus.
http://www.thestar.com.my
