In share trading, I've learnt to expect the unexpected. The bunch of retirees who meets every Sunday for tea has not been bothered with the price movements of this counter of late. Steady.
MIDF sees limited immediate gains for Affin . . However, MIDF believes that Affin's current valuations are unattractive due to its low ROE-generating potential. Despite the potential re-rating from the new major shareholder, the bank’s share price appears to have moved ahead of its fundamentals, MIDF said, as it maintained its “sell” recommendation with a revised Gordon growth model-derived target price (TP) of RM 2.35, up from RM1.82.
The TP is based on a revised FY2025F P/BV of 0.45x, reflecting the potential re-rating following the entry of Affin Bank’s new largest shareholder.
Already 4 days has lapsed since the signing of the S&P last Friday. Abang Jo hasn't announced the purchase consideration .......... because Abang Jo doesn't know, hahaha 🤣🤣🤣
Sentiment affected by Iran counter strike retailation against Israel overpay. Technically wallstreet have more or less down play the ongoing escalation the Middle East conflict. Israel is aware Iran is a big military power block In the Middle East
Once scorned and shunned, a stock so low, Affin, undervalued, a painful blow. Short sellers flocked, their bets were made, A downward spiral, a fearful trade.
But tides can turn, markets can mend, Affin's worth, it starts to ascend. Rumors spread, a catalyst's gleam, Short sellers panic, their profits scream.
Buybacks begin, a hasty retreat, The downward spiral, a painful defeat. The tables turn, the tide has swayed, Affin's value, no longer delayed.
Beneath the skies of Sarawak's grace, A leader stands, with wisdom's trace. Abang Jo, a name renowned and bright, Will guide Affin towards a shining light.
With steadfast hand and heart of gold, He'll steer the bank, a tale untold. Affin's future, secure and grand, Under his guidance, across the land.
The share price, a soaring bird, will fly, As trust and confidence multiply. Investors' faith, a beacon's gleam, Will fuel Affin's prosperous dream.
A gem oft overlooked, a stock unpraised, Affin, undervalued, its worth unrazed. But tides are turning, a shift in the air, Affin's share price, poised to declare.
From shadows of doubt, it starts to ascend, A beacon of hope, a trend to transcend. Investors awaken, their eyes now see, The potential within, wild and free.
With every tick up, a whisper of cheer, Affin's ascent, dispelling all fear. A journey of growth, a story untold, A tale of resilience, a future bold.
Affin – will a change of shareholders improve performance
The performance of Bursa banking group Affin over the past 12 year was nothing to shout about. Its performance, measured against a panel of 10 Bursa Malaysia banks, is below the sector median across key metrics such as returns, efficiency, and loan performance. However, it has improved its capital adequacy ratio.
But I would not consider Affin is a value trap as it remains profitable with a margin of safety over 30% based on the asset value. However, it lacks a sufficient margin of safety under the earnings value.
The Sarawak State Government has recently acquired a substantial stake in the bank. There is hope that the state would divert its funds to Affin thereby improving its deposits and hopefully grow its loans. But if the challenge is efficiency and loan performance, I am not sure whether there would be a quantum leap in performance. For more insights refer to page 20 of INVEST
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
aklobi
311 posts
Posted by aklobi > 1 month ago | Report Abuse
All this was an expected scenario, waiting for it to reach RM2 or below, otherwise not interested.