Price Target Analysis: AMBANK (1015)

return of the i3 spammer. Admin, please perma-ban this joker

2 months ago

https://www.nst.com.my/business/2023/07/933048/ambank-preferred-financier-tesla-model-y

2 months ago

troy88

Coming back!

2 months ago

success2628

Post removed.Why?

2 months ago

DividendGuy67

Long term chart suggest that the worst is over - the bottom is likely to be the bottom observed in 2020-2021.
The bank is under-valued but is under-valued for a reason. It doesn't share its wealth with shareholders. Despite earning 52 sen, it only paid 18 sen. The prior 3 years, total dividend is a measly 5 sen, 0 sen, 13 sen.

And this bank has a bad reputation to look after shareholders.

Many people look at under-value first. For me, I look at how well it treat shareholders in the past over many, many years. This bank, my confidence level, to take care of me as shareholders, is much lower than other banks like Maybank.

Still, some of the best speculative returns happens when perception changes. So, I own a very small amount for speculation only, but I'm not topping up, because I am just waiting to dispose at the swing high price. This is not for marriage, but just a one night stand. You never marry someone who doesn't take care of you over past decades.

1 month ago

DividendGuy67

If compare small banks like BIMB over the past 8 years, I very much prefer BIMB.
AMBANK dividend = 18.3, 5, 0, 13.3, 20, 15, 17.6, 15.5. Sum over 8 years = 104 sen. AMBANK price 3.82
BIMB dividend = 13.8, 10.9, 12.6, 16, 15.5, 14, 13, 12.2. Sum over 8 years = 108 sen. BIMB price 2.16

It is very clear, BIMB takes care of its shareholders much, much better than AMBANK.
Both companies are under-valued, relative to its NTA and PE.

But I owned BIMB 10 times the size of my ownership of AMBANK, because I prefer for the long term, the way BIMB shares its profits with shareholders. It can still improve a lot as it is still only sharing 38% of its historical earnings only.

1 month ago

speakup holding Ambank too. Bought at 2.70 when it plunged due to 1MDB payment

1 month ago

AmBank cut dividends in recent years to rebuild its capital after paying thr 1MDB fine/penalty. It's public info, in the news. Now it's ready to resume its previous dividend policy already.

1 month ago

troy88

this bank always bounces back

1 month ago

How about ABMB as compared to AMBANK and cimb?
Any suggestion?

1 month ago

ABMB is well-managed but branch network very little. To me it's something like a niche bank.

Both Alliance and AmBank has significant exposure to SME segment

But I observe that AmBank has more malay customers, while Alliance more chinese ones

1 month ago

@pang72 u see their P/E, earnings yield, profit margin, P/B ratio, almost everything similar

But CURRENT dividend yield, Alliance higher. Whereas for AmBank, u might have dividend upside (cos current payout ratio is relatively low)

Just my 2 sen

1 month ago

I thought for pbb however the dividend yield is low compare to other bank.
But, FF and local fund like pbb very much!

1 month ago

High risk high reward
Low risk low reward

PBB is very conservative in lending, that's why their bad loan ratios are quite pretty

1 month ago

I may stick to 2 big banks - MBB and RHB for steady dividend

1 month ago

wallstreetrookieNEW

No CIMB?

1 month ago

My bank holdings: Maybank for big cap, AmBank for mid cap

1 month ago

Thanks pinky.
Will look into ambank if any good entry

1 month ago

Singapore bases Great Eastern Holdings is in talks to buy MetLife Malaysian ventures in a deal that could value AmMetLife Insurance at up to US$300 million reported Bloomberg.

It reported that according to sources, OCBC is conducting due diligence on AmMetLife Insurance and is seeking regulatory approval to clinch the deal, the people said. A transaction could value AmMetLife which the US company jointly owns with public listed AMMB Holdings at between US250 million to US$300 million the people said.

1 month ago

besok limit up!

1 month ago

tomorrow open minimum RM4!

1 month ago

https://themalaysianreserve.com/2023/07/31/ocbcs-great-eastern-in-talks-to-buy-metlife-malaysian-arm-sources-say/

1 month ago

@pang72

"Lastly, we also favour AMBANK as we believe its current fundamentals are highly supportive of healthier discussions for M&As, which have in the past been frequently considered. The group is also one of the leaders in terms of SME profile, which is touted as a high-growth segment that could accelerate the group’s market share growth."
https://klse.i3investor.com/web/blog/detail/kenangaresearch/2023-08-01-story-h-243866735-Banking_June_2023_Statistics_Easing_Numbers

1 month ago

troy88

Solid! One of my favorite banks to invest

1 month ago

kokchengkai

no limit up but colour is RED ...what is tht mean for

1 month ago

Havefun

Why drop so much today?

1 month ago

Bright spot for non-interest income
AMMB’s 1QFY24 non-interest income advanced by a solid 30% yoy. While this was partly driven by an 82.1% yoy surge in investment income, we are encouraged to note that its fee income rose by 11.7% yoy in 1QFY24, primarily emanating from a 77.5% yoy increase in portfolio management fee, a 52.8% yoy rise in corporate advisory fee, and a 226.9% yoy jump in bancassurance commission.

Reiterate Add on AMMB
We retain our Add rating on AMMB given its attractive valuation of 6.7x CY24F P/E (below the sector’s 9.4x). Potential re-rating catalysts include above-industry loan growth, expected decline in LLP in 2Q-4QFY24F, and potential partial write-backs of management overlay (of RM362m at end-Jun 23). Potential downside risks include material deterioration in loan growth and asset quality. We maintain our FY24-25F EPS forecasts and DDMbased target price of RM4.39 (cost of equity of 10.2%; terminal growth rate of 4%).

Source: CGS-CIMB

1 month ago

Still holding my Ambank which I bought 2.70 when it crash during covid

1 month ago

Ambank is the bank with highest chance of takeover

1 month ago

Look beyond the headline and go into the details

I like the numbers I'm seeing, namely growth in Non-Interest Income

1 month ago