[%Yszy%]
Research by TA
SELL – TP RM2.95

"Weaker 1HFY24 Results”

We updated the beta and lowered our market risk premium from 6% to 5.5% for the banking sector on the back of the improving economic environment in Malaysia, the banking system’s healthy asset quality and capital ratios, stable interest rate environment and more positive investor sentiments. With that, we raise Affin TP from RM2.50 to RM2.95. Our valuation is based on an implied PBV of c. 0.66x based on the Gordon Growth Model. However, given that Affin’s share has risen steeply and ahead of its fundamentals, we maintain our SELL recommendation on the stock.

Analyst:
Li Hsia Wong 
[%Ptzf%]

$KLSE-AFFIN
Research by TA
SELL – TP RM2.95

"Weaker 1HFY24 Results”

We updated the beta and lowered our market risk premium from 6% to 5.5% for the banking sector on the back of the improving economic environment in Malaysia, the banking system’s healthy asset quality and capital ratios, stable interest rate environment and more positive investor sentiments. With that, we raise Affin TP from RM2.50 to RM2.95. Our valuation is based on an implied PBV of c. 0.66x based on the Gordon Growth Model. However, given that Affin’s share has risen steeply and ahead of its fundamentals, we maintain our SELL recommendation on the stock.

Analyst:
Li Hsia Wong 
liwong@ta.com.my