Share Price: RM5.20 | Target Price: RM5.70 | Rating: NEUTRAL
RHBIB has Downgrade AMBANK to Neutral and reduced its TP from RM6.70 to RM5.70 due to unfavourable exposures and news flow. It is of the view that AMMB’s relatively large exposure to the trade and manufacturing sectors potentially leaves it more exposed to US tariff-induced uncertainties. Furthermore recent M&A news flow (involving the Sarawak Government & Affin Bank) although unconfirmed may also weigh on its share price. The stock has risen by more than 30% since the start of 2024, and RHBIB does not expect a similar performance in 2025, cautioning investors to take some chips off the table for now.
AMBANK Research Update 21/4/25
Research House: RHB Investment Bank (RHBIB)
Analyst: Nabil Thoo, David Chong
Key Forecasts:
FY2025: Net Profit: RM1,981m | EPS: RM0.60 | DPS: RM0.27
FY2026: Net Profit: RM2,003m | EPS: RM0.61 | DPS: RM0.29
RHBIB’s FY2026 Earnings Forecast for AMBANK was downgraded from the previous Research Report dated 27/3/25. Net Profit and EPS forecast was previously RM2,103m and RM0.64 respectively.