Share Price: RM19.84 | Target Price: RM24.30 | Rating: Buy

BUY rating maintained while TP was reduced from RM26.60 to new RM24.30 with Forecast FY26 dividend yield of around 4%. RHBIB views Hong Leong Bank as a key defensive pick due to i) The group’s domestic- and household-centric portfolio with stable asset quality which insulates it from a potential trade downturn; ii) near-15-year low valuations means the downside risks are capped. Downside risks are mostly of “second order”, largely in relation to associate Bank of Chengdu (BOCD) and the broader China economy.