Banks : AffinHwang Capital maintains Neutral on banks, lowers earnings forecasts
KUALA LUMPUR (Dec 9): AffinHwang Capital Research has maintained its “Neutral” rating on the banking sector and said it cut its banking universe earnings forecasts by 2%/8%/7.8% for CY14/15/16, in anticipation of the cascading effects of macro risks on the banks’ earnings.
In a note Tuesday, the research house said that under its revised outlook, we like banks which are highly defensive in market shares, have sound asset quality.
“However, we maintain our Neutral stance on the sector.
“Our top stock pick is Public Bank Bhd with a Buy rating, both Hong Leong Bank Bhd and Alliance Financial Group Holdings Bhd are now “Add”. We now have “Reduce” calls on Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Capital Bhd,” it said.
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KUALA LUMPUR (Dec 9): AffinHwang Capital Research has maintained its “Neutral” rating on the banking sector and said it cut its banking universe earnings forecasts by 2%/8%/7.8% for CY14/15/16, in anticipation of the cascading effects of macro risks on the banks’ earnings.
In a note Tuesday, the research house said that under its revised outlook, we like banks which are highly defensive in market shares, have sound asset quality.
“However, we maintain our Neutral stance on the sector.
“Our top stock pick is Public Bank Bhd with a Buy rating, both Hong Leong Bank Bhd and Alliance Financial Group Holdings Bhd are now “Add”. We now have “Reduce” calls on Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Capital Bhd,” it said.
