AMMB Holdings [%vNuI%] 
Research by HLIB 
HOLD (Maintain): Price Target: RM2.85

"New insurance partner"

AMMB is looking to divest AGIB to LIB for RM1,168m (combination of cash and shares of the enlarged AGIB and LIB entity, where AMMB will finally own a 30% associateinterestofthecombinedduo).Overall,weviewthisasamildpositive development where it could potentially pocket some gains of RM300-400m and bump up CET1 ratio by 60bp. However, AMMB’s near-term earnings may drop 2- 3% due to a reduced stake but over the medium haul will likely be neutralized by cost synergies. Overall, our forecasts are unchanged. While valuations seem to be undemanding, there are no compelling catalysts to re-rate the stock. Retain HOLD and GGM-TP of RM2.85, based on 0.57x FY22 P/B.

Chan JitHoong, CFA, CPA
T (603) 2083 1722
E [%VaaJ%]

AMMB Holdings $KLSE-AMBANK 
Research by HLIB 
HOLD (Maintain): Price Target: RM2.85

"New insurance partner"

AMMB is looking to divest AGIB to LIB for RM1,168m (combination of cash and shares of the enlarged AGIB and LIB entity, where AMMB will finally own a 30% associateinterestofthecombinedduo).Overall,weviewthisasamildpositive development where it could potentially pocket some gains of RM300-400m and bump up CET1 ratio by 60bp. However, AMMB’s near-term earnings may drop 2- 3% due to a reduced stake but over the medium haul will likely be neutralized by cost synergies. Overall, our forecasts are unchanged. While valuations seem to be undemanding, there are no compelling catalysts to re-rate the stock. Retain HOLD and GGM-TP of RM2.85, based on 0.57x FY22 P/B.

Chan JitHoong, CFA, CPA
T (603) 2083 1722
E jhchan@hlib.hongleong.com.my