Saham: KLSE-AMBANK - PT. Ammb Holdings Berhad

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by CGSI

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by KENANGA

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by APEX

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research Report by TA

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research Report by PBIV

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research Report by MAYBANK

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research Report by KENANGA

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research Report by HLIB

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research Report by CGSI

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by HLIB

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by Maybank

AmBank grants RM193mil financing for Senibong Cove project

KUALA LUMPUR: AMMB Holdings Bhd (AmBank Group) has granted financing facilities totalling RM115 million to Senibong Cove Development Sdn Bhd and RM78 million to JBB Builders (M) Sdn Bhd, the appointed contractor for the reclamation of 60.7 hectares of waterfront land in Senibong Cove, Johor Bahru.

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by TA
Buy - TP RM5.60

"Strong Kickoff to FY25"

We update beta and lower 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 AMMB’s TP from RM4.74 to RM5.60. Our valuation is based on an implied PBV of c. 0.89x based on the Gordon Growth Model. With that, we upgrade AMMB from hold to BUY.

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

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by RHB
Buy - TP RM5.90

"NIM Management Bearing Fruit; Stay BUY"

Maintain BUY, new MYR5.90 TP from MYR5.50, 18% upside with c.5% FY25F (Mar) yield. AMMB’s Winning Together phase got off to a flying start, with 1QFY25 results beating expectations. A 10bps QoQ NIM expansion was the highlight, in our view – this overshadowed the more exceptional lower-than-expected credit costs. This, combined with a robust loan and investment banking pipeline, should be more sustainable for earnings growth ahead. AMMB remains a sector Top Pick for its undemanding valuation and capital management potential.

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

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by Public
Trading Buy - TP RM5.30

"Stronger Start"

AMMB Holdings started off the new financial year on stronger footing, with a 1QFY25 net profit of RM500.2m (+32.2% YoY, +5.0% QoQ) reported. Slightly ahead of our and consensus estimates at 28% of full-year forecasts, the discrepancy is largely on account of notably lower provisions (-93.6% YoY, -39.6% QoQ) due in part to write-backs, as improvements in NIMs also helped. Of some concern is the still-elevated incidences of newly-impaired loans, though tempered by better recoveries. We continue to note some encouraging developments in its expected numbers going forward nonetheless – improvements in net credit costs despite recent worries, and likely margin expansions. We remain encouraged over AMMB’s long-term prospects, reflected by these steady improvements on the operational front as the Group embarks on a new strategic journey under its Winning Together (WT29) plans. Our earnings estimates are left unchanged though we raise our dividend-based TP further to RM5.30 as we make adjustments to our valuation variables (i.e. risk premiums). We retain our Trading Buy call, with banking-related stocks attracting strong investor interest in recent times.

Analyst:
Ching Weng Jin
research@publicinvestbank.com.my

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by MIDF
Neutral - TP RM5.18

"1QFY25 Results: Major Loan Rebalancing Underway"

• 3MFY25’s Core NP of RM500m was Within / Within our/street forecasts: 29 %/ 28 % of full-year forecasts
• Management’s tone: Optimistic
• Core themes: (a) Liability management to improve NIM further, (b) Disappointing loan growth target revision, (c) Still plenty of upside for dividend payouts
• FY25/26/27 Core NP adjusted by +3%/+2%/+3%.
• Downgrade to NEUTRAL | Revised TP of RM5.18 | based on a revised FY26F P/BV of 0.80x (formerly 0.78 x, from FY25F )

Analyst:
Samuel Woo
samuel.woo@midf.com.my

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by Maybank
Buy - TP RM5.95

"1QFY25 results above expectations"

AMMB’s 1QFY25 results were above expectations, largely on account of lower-than-expected credit cost – we raise FY25-27E earnings by 2-3%. Our FY25E ROE of 9.5% continues to trail management’s target of 10%. Our TP is rolled forward and raised to MYR5.95 (from MYR5.05) and our payout ratio is revised to 50% from 42%, translating to an FY25E yield of 5.7%.

Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by Kenanga
Outperform - TP RM5.50

"Credit Cost and NIMs to Hail Onward"

AMBANK’s 1QFY25 net profit was within expectations with signals for low credit cost levels to sustain as the group utilises on forward-looking provisions and overlays. Thanks to a focus on higher-margin loans and streamlining of unfavourable deposits, the group will likely have better reins on its NIMs with previously mentioned strategies to follow suit. We tweak our FY25F/FY26F earnings by +4% each and raise our TP to RM5.50 (from RM5.20) to reflect better confidence in our GGM inputs that ROE levels can be sustained (at 9.5%). Maintain OP.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by HLIB
Buy - TP RM5.75

"Good start"

AMMB’s 1QFY25 earnings climbed 5% QoQ on the back of positive Jaws, lower loan loss provision, larger writeback for commitments and contingencies, along with stronger associate contribution. Also, NIM widened sequentially. However, loans growth slowed and GIL ratio ticked up. Overall, results were largely in line with expectations but we raise FY25-26 profit by 2-3% to account for lower NCC, following new management guidance. Separately, we introduce FY27 estimates. All in all, AMMB’s risk-reward profile continues to be skewed to the upside; the adoption of FIRB creates scope for a larger dividend payout. Maintain BUY with a higher GGM-TP of RM5.75 (from RM4.60), based on 0.90x CY25 P/B.

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

$AMBANK / 1015 (AMMB HOLDINGS BERHAD)
Research by CGS
Add - TP RM5.95

"Delivered on NIM expansion guidance"

■ Although AMMB’s 1QFY3/25 net profit accounted for 26.5% of our full-year forecast, we deem it in line in anticipation of weaker quarters ahead.
■ AMMB delivered on its guidance for NIM expansion, which rose by a commendable 10bp qoq and 13bp yoy in 1QFY25.
■ Reiterate Add, given AMMB’s attractive valuation of 8.3x CY25F P/E (vs. the sector’s 10.6x) and potential write-back in management overlay.

Analyst:
Winson NG, CFA
winson.ng@cgsi.com