[%EucX%]
Research by RHB
Sell – TP RM1.60

"Another Mixed Bag; Still a SELL ”

Still SELL, new MYR1.60 TP from MYR1.65, 50% downside with c.3% FY25F yield. Affin’s 1H24 results benefitted from a net writeback in impairment allowances, as PIOP missed estimates following the resumption of NIM compression. We make no change to our SELL call, as we deem the stock’s current valuation to be unjustified against its weak earnings generation. However, the Sarawak State Government’s impending purchase of a further 15-25% stake in Affin could keep valuations elevated in the near-term.

Analyst:
Nabil Thoo
[%IWCL%]
David Chong, CFA
[%feuj%]

$KLSE-AFFIN
Research by RHB
Sell – TP RM1.60

"Another Mixed Bag; Still a SELL ”

Still SELL, new MYR1.60 TP from MYR1.65, 50% downside with c.3% FY25F yield. Affin’s 1H24 results benefitted from a net writeback in impairment allowances, as PIOP missed estimates following the resumption of NIM compression. We make no change to our SELL call, as we deem the stock’s current valuation to be unjustified against its weak earnings generation. However, the Sarawak State Government’s impending purchase of a further 15-25% stake in Affin could keep valuations elevated in the near-term.

Analyst:
Nabil Thoo
nabil.thoo@rhbgroup.com
David Chong, CFA
david.chongvc@rhbgroup.com