[%VVSP%] 
Research by TA
Buy - TP RM6.28

"1HFY24 Results Within Expectations"

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 RHB’s TP from RM5.87 to RM6.28. Our valuation is based on an implied PBV of c. 0.79x based on the Gordon Growth Model and a 3% ESG premium. Given that the risk-reward potential has widened due to the revised TP, we upgraded RHB from hold to BUY.

Analyst:
Li Hsia Wong  
[%zFKJ%]

$KLSE-RHBBANK 
Research by TA
Buy - TP RM6.28

"1HFY24 Results Within Expectations"

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 RHB’s TP from RM5.87 to RM6.28. Our valuation is based on an implied PBV of c. 0.79x based on the Gordon Growth Model and a 3% ESG premium. Given that the risk-reward potential has widened due to the revised TP, we upgraded RHB from hold to BUY.

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