[%Gqkd%]
Research by HLIB
SELL  – TP RM2.80

"Saved by write-backs”

Affin’s 2Q24 net profit grew 5% YoY given write-backs of bad loan provision and lower effective tax rate. Also, GIL ratio experienced a downtick. That said, NIM contracted sequentially and loans growth tapered. Overall, results were largely in line with expectations and hence, forecasts were kept. All in all, we still find Affin’s risk-reward profile to be skewed to the downside. Although the Sarawak story has merits, it does not lead to automatic success. Maintain SELL but with higher GGM-TP of RM2.80 (from RM2.20), based on 0.55x FY25 P/B

Analyst:
Chan Jit Hoong, CFA, CPA
[%pcKG%]

$KLSE-AFFIN
Research by HLIB
SELL  – TP RM2.80

"Saved by write-backs”

Affin’s 2Q24 net profit grew 5% YoY given write-backs of bad loan provision and lower effective tax rate. Also, GIL ratio experienced a downtick. That said, NIM contracted sequentially and loans growth tapered. Overall, results were largely in line with expectations and hence, forecasts were kept. All in all, we still find Affin’s risk-reward profile to be skewed to the downside. Although the Sarawak story has merits, it does not lead to automatic success. Maintain SELL but with higher GGM-TP of RM2.80 (from RM2.20), based on 0.55x FY25 P/B

Analyst:
Chan Jit Hoong, CFA, CPA
jhchan@hlib.hongleong.com.my