reports
CIMB Group Holdings Berhad: 1 director
A director at CIMB Group Holdings Berhad sold 1,000,000 shares at 6.589MYR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two...
- Keith Wee Teck Keong
Banking - Digital Banks Ramping Up Deposit Competition?
Digital Banks Ramping Up Deposit Competition? As the five digital banks prepare to commence operations in the coming months, we anticipate a focus on deposit acquisition, potentially impacting sector NIM slightly. Sector valuations have risen to a historical mean P/B of 1.10x, which appears fair against forecasted ROE of 10% and earnings growth of only 6% vs our KLCI earnings growth assumption of 11%. We maintain our MARKET WEIGHT recommendation on the sector. CIMB remains our preferred choice.
- Jonathan Koh
- Keith Wee Teck Keong
- Posmarito Pakpahan
- Tanaporn Visaruthaphong
ASEAN Banks – ASEAN Banks: Quarterly Update
OVERWEIGHT on Indonesia banks as they offer the highest earnings growth in 2024/25 and benefit from the recent rally in commodity prices. We like Singapore banks for their attractive dividend yields. Our top BUYs are DBS (Target: S$43.25), CIMB (Target: RM7.33), SCB X (Target: Bt130) and BMRI (Target: Rp7,900). We also like OCBC (Target: S$18.15), RHB (Target: RM6.18) and BBNI (Target: Rp6,300) as attractive yield plays.
1023 CIMB GROUP HOLDINGS BHD
BBL BANGKOK BANK PUBLIC COMPANY LIMITED
D05 DBS GROUP HOLDINGS LTD
KTB KRUNG THAI BANK PUBLIC CO. LTD.
BBRI PT BANK RAKYAT INDONESIA (PERSERO) TBK CLASS B
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
TISCO TISCO FINANCIAL GROUP
BMRI PT BANK MANDIRI (PERSERO) TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
SCB SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED
BBCA PT BANK CENTRAL ASIA TBK
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
PBBANK PUBLIC BANK BERHAD
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
ABMB ALLIANCE BANK MALAYSIA BHD
ABANK AFFIN BANK BHD
TTB TMBTHANACHART BANK PCL
BBTN BANK TABUNGAN NEGARA PERSERO TBK PT
BBNI BANK NEGARA INDONESIA PERSER
BBYB BANK NEO COMMERCE
BIMB BANK ISLAM MALAYSIA BHD
BTPS BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH TBK PT
MAYBANK MALAYAN BANKING BHD
- Keith Wee Teck Keong
Banking - Risk To Reward Remains Well Balanced
Risk To Reward Remains Well Balanced Loans growth edged upwards to 5.8% in Feb 24 (Jan 24: 5.7%) on the recovery in both the HH and business segments and household loans. We anticipate a 5.5-6.0% system loans growth for 2024, implying a 1.18x loans to GDP growth multiple which is in line with its 10-year mean. We find the sector’s risk to reward well-balanced (mean valuation) in the absence of strong catalysts. The sector’s 2024 earnings growth is expected to lag the broader equity market. Maint...
- Keith Wee Teck Keong
Banking - Risk To Reward Remains Well Balanced
Loans growth edged upwards to 5.8% in Feb 24 (Jan 24: 5.7%) on the recovery in both the HH and business segments and household loans. We anticipate a 5.5-6.0% system loans growth for 2024, implying a 1.18x loans to GDP growth multiple which is in line with its 10-year mean. We find the sector’s risk to reward well-balanced (mean valuation) in the absence of strong catalysts. The sector’s 2024 earnings growth is expected to lag the broader equity market. Maintain MARKET WEIGHT with CIMB being our...
1295 PUBLIC BANK BHD
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
ABMB ALLIANCE BANK MALAYSIA BHD
TXG 10X GENOMICS INC CLASS A
ABANK AFFIN BANK BHD
123F 123FAHRSCHULE SE
BIMB BANK ISLAM MALAYSIA BHD
Z29 029 GROUP SE
MAYBANK MALAYAN BANKING BHD
- Keith Wee Teck Keong
Banking - 2H23 Financial Stability Report: Vigilant Of Potential Macro...
2H23 Financial Stability Report: Vigilant Of Potential Macroeconomic Headwinds BNM released its 2H23 financial stability report. It believes Malaysian financial institutions remain well insulated from potential financial volatility arising from the normalisation of interest rates in developed countries. However, it remains vigilant of the impact of input cost pressures from lower subsidies and a weaker ringgit on asset quality going forward. Maintain MARKET WEIGHT as current risk to reward remai...
- Keith Wee Teck Keong
Banking - 4Q23: Muted Earnings Outcome
4Q23: Muted Earnings Outcome The sector delivered a muted earnings growth of 1% yoy in 4Q23 while contracting 8% qoq on NIM compression and higher provisions. As the sector is trading at its historical mean valuation and is expected to lag the FBMKLCI’s earnings growth, we perceive the current risk-to-reward ratio as well-balanced. In the absence of meaningful earnings catalysts, maintain MARKET WEIGHT on the sector. CIMB remains our top pick.
- Malaysia Research Team
- Vincent Khoo Boo Aik
Strategy - 4Q23 Results Wrap-up
4Q23 Results Wrap-up While the 4Q23 results season continued to feature a wide breadth of disappointments, we marginally raise our 2024 earnings forecast for the FBMKLCI. We retain our bullish market view, underpinned by expectations of an easing US interest rate cycle and the accompanying prospectively stronger ringgit, the country’s progressive business policies, and significant corporate earnings recovery. We raise our year-end target for the FBMKLCI to 1,680 to mainly reflect the inclusion o...
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - 4Q23: Solid ROE Trajectory To Drive Further Re-...
4Q23: Solid ROE Trajectory To Drive Further Re-rating CIMB reported 4Q23 earnings that were in line with expectations, underpinned by benign provisions and solid loans growth momentum. 2023 pre-provision operating profit grew a commendable 6% yoy, despite the challenging NIM environment. Maintain BUY with a higher target price of RM7.33 (1.08x 2024F P/B, 10.4% ROE) from RM6.50 post earnings adjustment. We continue to like CIMB with its solid ROE trajectory and attractive valuations.
- Adrian Loh Tzum Yung
- Bella Lu Yifei
- Chong Lee Len
- Damon Shen
- Jack Goh Tooan Orng
- Jacquelyn Yow Hui Li
- Jieqi Liu
- Jo Yee Ng
- John Cheong Ming Chern
- Julia Pan Mengyao
- Jun Sian Tan
- Kasemsun Koonnara
- Keith Wee Teck Keong
- Ken Lee
- Kenny Yong Hui Lim
- Leow Huey Chuen
- Llelleythan Tan Tan
- Ming San Soong
- Roy Chen Chengzhi
- Shirley Wang Xueyi
- Stella Guo Yuting
- Stevanus Juanda
- Tanaporn Visaruthaphong
- Wei Xiang Ku
Regional Morning Notes - Friday, March 01, 2024
GREATER CHINA Sector Automobile: Weekly: PEV market share rebounds; price war heats up. Maintain UNDERWEIGHT. Top SELLs: XPeng. Top BUY: CATL, Tuopu and Desay SV. Results Budweiser APAC (1876 HK/BUY/HK$12.68/Target: HK$19.50): 2023: Results miss; mixed signals from the results. Hong Kong Exchanges and Clearing (388 HK/HOLD/HK$242.80/Target: HK$262.00): 4Q23: Passable results. Maintain HOLD. NetEase (9999 HK/BUY/HK$176.20/Target: HK$202.00): 4Q23: Earnings miss; upcoming blockbusters in 2024. New...
S63 SINGAPORE TECHNOLOGIES ENGINEERING LTD
1023 CIMB GROUP HOLDINGS BHD
UNTR PT UNITED TRACTORS TBK
00388 HONG KONG EXCHANGES & CLEARING LTD.
STEC SINO-THAI ENGINEERING & CONSTRUCTION PCL
AMATA AMATA CORP
B8O YANGZIJIANG SHIPBUILDING (HOLDINGS) LTD.
AP4 RIVERSTONE HOLDINGS
CPN-R CENTRAL PATTANA PCL NVDR
GENM GENTING MALAYSIA BHD
MAHB MALAYSIA AIRPORTS HLDGS BHD
01876 BUDWEISER BREWING CO. APAC LTD.
TDC TIME DOTCOM BHD
09999 NETEASE INC
00017 NEW WORLD DEVELOPMENT CO. LTD.
CK CH. KARNCHANG PUBLIC CO LTD
- Keith Wee Teck Keong
Banking - Loans Growth Gains Traction
Loans Growth Gains Traction Loans growth edged up to 5.3% (Nov 23: 4.9%) on a recovery in business loans. We anticipate a 5.0-5.5% system loans growth for 2024, implying a 1.15x loans to GDP growth multiple which is in line with its 10-year mean. We find the sector’s risk to reward to be well balanced in the absence of strong catalysts. The sector’s 2024 earnings growth is expected to lag that of the broader equity market. Maintain MARKET WEIGHT with CIMB being our top pick within the sector.
- Keith Wee Teck Keong
CIMB Group (CIMB MK) - Multiple Growth Levers For Potential Positive E...
Multiple Growth Levers For Potential Positive Earnings Surprise Management remains fairly optimistic on the group’s overall outlook, on the back of improving asset quality trends, strong non-interest income, stronger loans growth momentum and more rational deposit pricing. Meanwhile, we see earnings tailwinds emanating from strong non-interest income growth momentum and lower-thanexpected credit cost. Maintain BUY with a higher target price of RM6.73 (1.00x 2024F P/B, 10.6% ROE) from RM6.56 afte...
- Benjaphol Suthwanish
- Damon Shen
- Jieqi Liu
- Johnny Yum Chung Man
- Jonathan Koh
- Keith Wee Teck Keong
- Nurul Nazira Binti Abdullah
- Stevanus Juanda
- Tanaporn Visaruthaphong
Regional Morning Notes - Wednesday, January 31, 2024
GREATER CHINA Sector Property: Tier 1 cities stepping up on easing HPRs; preview of 2023 results of CR Land and COLI. Update Sunny Optical (2382 HK/BUY/HK$54.05/Target: HK$77.10): 2023 earnings missed; 2024 recovery remains intact. INDONESIA Update Astra International (ASII IJ/HOLD/Rp5,100/Target: Rp5,500): BYD entry could pose issues for ASII. MALAYSIA Results Sunway REIT (SREIT MK/BUY/RM1.59/Target: RM1.71): 4Q23: Results in line; expect better 2024 on full tourism recovery. Update CIMB Gr...
- Keith Wee Teck Keong
Banking - Allaying Any Concerns Of Recent Small-Cap Meltdown On Banks
Allaying Any Concerns Of Recent Small-Cap Meltdown On Banks The recent share price rout of a number of mid-to-small capitalisation stocks on Bursa Malaysia may have raised some concerns of potential share margin losses for banks and other financial institutions. In this note, we allay any potential concerns given the smallish market capitalisation and loan exposure relative to the banking system loans and capital base.
- Jonathan Koh
- Keith Wee Teck Keong
- Posmarito Pakpahan
ASEAN Banks – ASEAN Banks: Quarterly Update
Interest rates have peaked and entered a downcycle. Indonesian banks are the biggest beneficiaries of lower interest rates and have the highest earnings growth in 2024 and 2025. Our top BUYs are OCBC (Target: S$16.85), CIMB (Target: RM6.65), SCB X (Target: Bt124) and BBNI (Target: Rp6,300). Yield plays, such as DBS (Target: S$41.65), RHB (Target: RM6.35), KTB (Target: Bt21.50) and BMRI (Target: Rp6,500), are attractive in an environment of lower bond yields.
1023 CIMB GROUP HOLDINGS BHD
BBL BANGKOK BANK PUBLIC COMPANY LIMITED
D05 DBS GROUP HOLDINGS LTD
KTB KRUNG THAI BANK PUBLIC CO. LTD.
BBRI PT BANK RAKYAT INDONESIA (PERSERO) TBK CLASS B
U11 UNITED OVERSEAS BANK LTD. (SINGAPORE)
TISCO TISCO FINANCIAL GROUP
BMRI PT BANK MANDIRI (PERSERO) TBK
KBANK KASIKORNBANK PUBLIC CO. LTD.
SCB SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED
BBCA PT BANK CENTRAL ASIA TBK
O39 OVERSEA-CHINESE BANKING CORPORATION LIMITED
PBBANK PUBLIC BANK BERHAD
RHBBANK RHB BANK BHD
HLFG HONG LEONG FINANCIAL GROUP
AMM AMMB HOLDINGS BHD
HLBK HONG LEONG BANK BERHAD
ABMB ALLIANCE BANK MALAYSIA BHD
ABANK AFFIN BANK BHD
TTB TMBTHANACHART BANK PCL
BBTN BANK TABUNGAN NEGARA PERSERO TBK PT
BBNI BANK NEGARA INDONESIA PERSER
BBYB BANK NEO COMMERCE
BIMB BANK ISLAM MALAYSIA BHD
BTPS BANK TABUNGAN PENSIUNAN NASIONAL SYARIAH TBK PT
MAYBANK MALAYAN BANKING BHD
- Malaysia Research Team
Strategy - Breaking Away From The January Jinx
Breaking Away From The January Jinx Malaysian equities are off to a good start for the year, breaking from recent years’ January jinx to offer moderate prospective gains in 1H24. Catalysing the market’s upward trajectory are domestic investment events such as Iskandar 2.0 and NETR. 2024 should favour deep value laggards, including high yielders and small-mid caps. Top picks: CIMB Group, Gamuda, Inari Amertron, IOI Corporation, Malaysia Airports Holdings, My EG Services, NationGate Holdings and S...
- Keith Wee Teck Keong
Banking - Recovery In Loans Growth
Recovery In Loans Growth Loans growth edged upwards to 4.9% on recovery in business loans. However, leading loans growth indicators in the form of loans applications and approvals have weakened. All in, we find current sector valuations at -0.5 SD from the historical mean fair, considering the absence of strong earnings catalysts (flattish NIM and modest recovery in loans growth). Share prices should be supported by attractive dividend yields. Maintain MARKET WEIGHT with CIMB as our top pick.
- Keith Wee Teck Keong
Banking - Lacking Fresh Catalysts
Lacking Fresh Catalysts The sector delivered a 14% yoy earnings growth in 3Q23 on lower tax and provisions. We think the sector’s current risk to reward is balanced given the lack of fresh catalysts. This is reinforced by our expectation of a modest sector earnings growth of 6% in 2024 which lags the broader market as well (FBMKLCI earrings growth forecast: 11% in 2024). Maintain MARKET WEIGHT. Our two sector top picks are CIMB Group and Public Bank.
- Malaysia Research Team
- Vincent Khoo Boo Aik
1H24 Strategy – Gaining Tempo
Gaining Tempo We advocate a risk-on strategy in 1H24 as Malaysian equities offer moderate prospective gains in 1H24, as expectations of a globally falling interest cycle override the possibility of the US economy slipping into recession. Capitalise on key market rerating events such as expectations of easing US Fed funds, cyclical recovery of global semiconductor demand (4Q23), and China’s economic recovery. Our end-24 FBMKLCI target of 1,605 implies 14.9x 2024 earnings, or -1.0SD to the histori...
- Anas Fitri Bin Ahmad
- Chong Lee Len
- Desmond Chong Chee Wai
- Jack Goh Tooan Orng
- Jack Lai Yuan Khai
- Jacquelyn Yow Hui Li
- Jun Sian Tan
- Keith Wee Teck Keong
- Kong Ho Meng
- Leow Huey Chuen
- Nurul Nazira Binti Abdullah
- Philip Wong
- Vincent Khoo Boo Aik
- Wei Xiang Ku
Malaysia Strategy 1H24 - Gaining Tempo
Executive Summary Malaysian equities gaining tempo in 1H24. Malaysian equities offer moderate prospective gains in 1H24, as expectations of a globally falling interest cycle override the possibility of the US economy slipping into recession. Specifically, the equity market will anticipate a dovish US interest rate policy that is accompanied by a steady (and moderate) recovery of the ringgit vs the US dollar and improving foreign equity inflows. Meanwhile, positive domestic factors to note are ea...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.