Share Price: RM21.24 |Target Price: RM23.60 | Rating: Buy
HLBank’s 1HFY25 earnings were in line, driven by improved NIM, positive Jaws, strong loans growth and robust trading income. Excluding Bank of Chengdu, HLBank’s PBT (72% of group PBT) grew a solid 10.3% yoy. Its current valuation of 1.06x P/B is attractive vs the sector’s 1.24x despite generating higher ROEs. We view the stock as an attractively-valued high-quality laggard within the sector. Maintain BUY and target price of RM23.60 (1.22x FY25 P/B, 11.5% ROE).
HLBANK Results Update for Q4 Ending 30/6/24
Research House: UOB Kay Hian Investment Bank (UOBKH)
Analyst: Keith Wee Teck Keong
FY2025 Forecast: Net Profit: RM4,552m | EPS: RM2.19 | DPS: RM0.765