Share Price: RM4.35 | Target Price: RM4.84 | Rating: Hold
Alliance’s loan book is largely insulated against export shocks. Medium-term loans growth is expected to outpace the industry. A proposed RM600m rights issue could lift CET1 to 13.6%, fuelling future growth and providing sufficient capital buffer. While NIMs may compress slightly due to deposit competition, they should remain stable in FY26. Net credit cost rose to 30.6bp but remains prudent. Maintain HOLD and target price of RM4.84, as valuation reflects limited near-term upside after the rights dilution.
Alliance’s loan book is largely insulated against export shocks. Medium-term loans growth is expected to outpace the industry. A proposed RM600m rights issue could lift CET1 to 13.6%, fuelling future growth and providing sufficient capital buffer. While NIMs may compress slightly due to deposit competition, they should remain stable in FY26. Net credit cost rose to 30.6bp but remains prudent. Maintain HOLD and target price of RM4.84, as valuation reflects limited near-term upside after the rights dilution.
ABMB Research Update 16/4/25
Research House: UOB Kay Hian Investment Bank (UOBKH)
Analyst: Philip Wong
Key Forecasts:
FY2025 Forecast: Net Profit: RM747m | EPS: RM0.48 | DPS: RM0.191
FY2026: Net Profit: RM798m | EPS: RM0.512 | DPS: RM0.204
UOBKH’s FY2026 Earnings Forecast for ABMB was downgraded from the previous Research Report dated 26/3/25. Net Profit and EPS forecast was previously RM725.8m and RM0.469 respectively.
Research House: UOB Kay Hian Investment Bank (UOBKH)
Analyst: Philip Wong
Key Forecasts:
FY2025 Forecast: Net Profit: RM747m | EPS: RM0.48 | DPS: RM0.191
FY2026: Net Profit: RM798m | EPS: RM0.512 | DPS: RM0.204
UOBKH’s FY2026 Earnings Forecast for ABMB was downgraded from the previous Research Report dated 26/3/25. Net Profit and EPS forecast was previously RM725.8m and RM0.469 respectively.