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.
ABMB Research Update
Research House: UOB Kay Hian Investment Bank (UOBKH)
Analyst: Philip Wong
FY2025 Forecast: Net Profit: RM747m | EPS: RM0.48 | DPS: RM0.191