AFFIN BANK BERHAD

KLSE (MYR): AFFIN (5185)

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Last Price

2.60

Today's Change

+0.02 (0.78%)

Day's Change

2.55 - 2.61

Trading Volume

3,432,400

Details of Changes
Securities After Change
Transactions
Ann. Date Name Details of Changes Securities After Changes
Date Type No. of Shares Price Direct (%) Indirect (%) Total (%)
Discussions
2 people like this. Showing 50 of 3,817 comments

klee

epf block,anyway its just matter of time

1 week ago

EngineeringProfit

Optimism +++++

1 week ago

klee

negative ppl can only be those who dunno fa,ta n current development of affairs

1 week ago

GSX1111

Affin NAB is 4.69. If 1 times of PBV, means likely MO at RM4.69. That is huge premium of current price RM2.65.

1 week ago

GSX1111

But wonder why the market price did not react to this NAB of 4.69. It is kind of slow climb.

1 week ago

klee

sarawak still negotiating with ltat,too fast price appreciation is not favourable to buying party

1 week ago

rohank71

#GSK, today banks don't trade at premium to book coz of lots of Toxic assets/book. even US banks trade at discount to book. Affin is know to have toxic assets which doesn't provide any returns, hence it has been trading a huge discount. one way is to write down the toxic asset and do a deal. which will mean the book value will drop...
I have been hoping for 0.65 to 0.75 times book. or abt 3.20 per share.
LTAT also knows that Affins book is toxic.

1 week ago

LubeTrader

rohank71, appreciate you pointing out this factor that many failed to consider. I'm pretty sure there are non-performing, money-losing assets/investments in Affin's book. Still after discounting these, fair value per share as you calculated is 3.20- Yes the night is still young.

1 week ago

beluga

Indeed the assets quality of Affin has always been doubt by the market. That explains the huge discount. Mainly it’s because of their affiliation with LTAT and Boustead.

At the same time, I think the market failed to recognise that no matter how badly managed these two institution are, they have an IMPLICIT guaranteed from MOF (the government)… yes in other words, taxpayer money. It is not too-big-to-fail case ; but too-political-important-to-fail. It’s just like Tabung Haji. You do not want to upset the people from the Armed Forces.

Eventually these implicit guaranteed, became an explicit guaranteed from the government. Just like what happened few months ago, the MOF guaranteed the RM2 billion loan for LTAT/BHB in Oct 2023 for them to takeover BPlant and remaining to settle the debt due in December 2023. Yes, almost 900 million loan guaranteed by MOF for LTAT/BHB to settle their debt (sukuk) that was due in Dec 2023. (correct, NEW debt to pay OLD debt, but this time EXPLICIT guarantee by government. From implicit to explicit..).

These assets quality in question…however improbable to default were to crystallise, ultimately, it won't be Affin Bank's problem. It will be Malaysians' problem.

Maybe this short opinion shall explain why our Ringgit is always on pressure..and hitting low. The country debt and liabilities is RM1.45 trillion .. excluding those implicit guarantee commitments.

ps : US banks and our banks, especially Affin are ocean wide different. Ours are relatively “easier" to value due to the almost non existence of complex structured derivatives in their books. Here, mostly plain vanilla kind derivatives only.

1 week ago

beluga

From Boustead Holdings Berhad Independent Adviser Circular to Shareholders by Kenanga Investment Bank :

"We are of the view that the PBR is the most appropriate valuation methodology for ABB due to, amongst others, the following: (i) We have adopted the PBR valuation methodology in arriving at the estimated value of ABB in view that ABB Group constitutes financial entities.

For a financial entity, the NA size can be an important driver of future potential earnings and hence its valuation given that the size of the NA would, amongst other, determine the scale of financing activities for the financial entity to undertake. Further, the assets of financial entities are largely in the form of financial assets such as loans, government and corporate bonds and equity investments, whereby these assets as well as the investment financial entities’ liabilities are recorded at current market values as at the balance sheet date as reported in the financial entities’ audited financial statements.

As at 31 December 2022, more than 90% of ABB’s unaudited total assets comprise of cash, deposits, financial assets and loans. The book values of such assets are expected to be close to the market value.

We are of the view that the carrying values of these assets are expected to approximate to their fair value after taking into consideration, amongst others, the nature of cash and deposits which are expected to be relatively liquid as well as the annual impairment review on the financial assets and loans being conducted on the carrying value of these assets. ABB has provided allowance for impairment losses on financing and other financing as well as impairment losses on other assets. Based on information made available, as at the LPD, we are of the view that there is no indication of potential impairment which may be required on the carrying values of these assets as at 31 December 2022.

Premised on the above, we are of the view that the PBR approach would be most appropriate valuation methodology to value ABB "

1 week ago

metaverse

Yes, confirmed beluga is a full time US fund manager. Small traders like us don't have this kind of financial knowledge to understand why Abang Jo has underpaid Affin. I am totally surprised Quek Leng Chan failed to put up a good show as this kind of half-baked takeover deal is his expertise to squeeze his opponent so in a way he thinks to have a business partner like Abang Jo will add lubricant to his HL group because down the road Sarawak will be flooded with mega projects. PMX dare not to mess with Abang Jo, DAP has to fly to Sarawak and said sorry to them and even with an ACE card on hand, QLC also keep quiet and let Abang Jo show hand as if he is holding the best card on the table 😁

1 week ago

beluga

Haha. I wish @metaverse. If I'm fund manager, you would see XXX fund owns 4.9% of ABB already in the shareholders list! Unfortunately, I do not have OPM to take large stake in ABB. I am just a small fish investor. I am a minority shareholder of ABB. I have a vested interest in ABB. I am bullish on ABB since long time. I did went to post graduate business school at Cass. I had investment experiences. I have much interest in finance. I read a lot. I am investing for my own only. Maybe Affin IB should offer me a job though. PM me the offer! Haha. :P

1 week ago

rohank71

#beluga, thank you for your explanation and clarification. let's all hope for the highest price possible for Affin, which may force Swak to work hard on their huge investment.

1 week ago

LubeTrader

One question guys...something I can't seem to find an explanation. Why is EPF actively disposing?

1 week ago

metaverse

Just a wile guess. Maybe due to Affin's low rating on ESG as EPF is one of the top 20 largesnt pension funds in the world so when they have to benchmark each other how they are ranked in ESG.

Top 20 largest pension funds in the world:

https://i.postimg.cc/Bb5HSj8p/top-pension-fund.jpg

https://www.sinchew.com.my/news/20240223/yl/5411308

泰益功过历史自有定谳
在维持砂拉越现有的和谐与多元基础上,泰益的贡献不可抹杀,而砂拉越在联邦政治版图中所拥有的政治地位,尽管是已故首长阿德南沙登的政治遗产,但这也是泰益的保护主义所奠基而来的。

1 week ago

metaverse

Fast forward to year 2030, due to political issue, most high tech companies in Kulim High Tech Park faced no choice but to relocate to Bintulu to take advantages of Bintulu's port facility and clean energy such as hydrogen. Due to constant water issue, most high tech companies in Penang also pulling out and move their operation next to WD's mega factory in Sarawak. Due to energy crisis in Sabah because Sabah Energy SB is buying 0.4 from KL's IPP and selling 0.3 to Sabah's consumer so those small factories in Sabah also faced no choice but relocate to Sarawak and Abang Jo said in order to create a self-contained economy to decouple from West Malaysia's collapsing economy all companies doing business in Sarawak is "encouraged" to use only the banking services provided by Sarawak bank. Also in year 2030, the price of oil is as low as can water as no one will use dirty fuel anymore 😁

1 week ago

metaverse

Big data firms need to use a lot of cold water to cool down their servers and due to the pressure from environmental group those big data firms have no choice but to avoid dirty energy and use clean energy. So for that matters, most of the high tech firms will eventually relocate to Sarawak as Sarawak have the longest Kajang River with plenty of fresh water and Sarawak is also a top player in RE. As far as the problem of skilled engineers is concerned, due to the Sarawak's natural beauty (to attract international top notch digital nomads) and their world's class education system with the ability to speak international languages fluently this well protected region will become the next economic superpower.

1 week ago

beluga

Even WEIRDER is that EPF only dispose Affin.

Malaysia has 10 listed banks. EPF choose to dispose ABB while purchased ALL of the rest. Interesting right?

Did EPF send a team to do a due diligence on ABB? I doubt.
Did ABB management allow EPF team to look into its books other than publicly available information? I doubt.
Did ABB fail BNM stress test ? Nope.
Did Affin Capital Adequacy Ratio and Liquidity Coverage Ratio (or other metrics like Loan loss coverage etc) fall below regulatory requirement or below its peer average? Nope.
Did any rating company downgraded ABB debt facilities? Nope.
Is ABB Gross Impaired Loan much higher than its peers? Nope.
Did ABB fail to make its ROE greater than its cost of capital? Nope.
Is ABB trading at premium compared to its peer? Nope. In fact the cheapest.

All the challenges especially macroeconomic challenges that ABB is facing is also faced by all other banks. So why did EPF choose to dispose Affin only? I also don’t know. :)

But then, EPF total funds is RM 1 TRILLION. The transacted value in ABB is just a drop in the ocean. I don’t know what they are doing or trying to do with this disposal.

1 week ago

LubeTrader

Is it possible a "hidden entity" is involved?

1 week ago

aklobi

@beluga, Affin is a promising stock, but has gone up wildly in very short time. Also, as @TheContrarian mentioned before, the medium term outlook for Affin isn't so bright considering the costs the bank would endure after the Sarawak takeover due to opening new branches etc. Taking all that into account, I believe a price between RM 2 - 2.20 (FOR THE MEDIUM TERM) is a fair price. The long term price shouldn't be below RM3. The only thing going on currently is the nonstop hype and @LubeTrader's "hidden entity" conspiracy theories.. lol

6 days ago

chamlo

EPF disposed yes in news but not Sarawak state govn buying more.

5 days ago

chamlo

How about LTAT so many resignation since Sarawak state govn announced will buy more? Is it Sarawak state willing to pay only RM 2.2 but not more so LTAT top managements resign?

5 days ago

TheContrarian

Sarawak is paying RM2.40 based on leaked documents.

5 days ago

TheContrarian

Sarawak doesn't buy from the open market because they are cheapskate, they want to buy cheaply off the hands of LTAT who desperately need to raise cash because they got trapped into doing a takeover of Boustead Plantation.

5 days ago

TheContrarian

LTAT is very broke and without selling a block of Affin it would default on Boustead Holdings huge loans.

5 days ago

TheContrarian

EPF sells Affin to re-balance their bank shares portfolio, moving out of Affin into Bank Islam as EPF funds are now segregated into Shariah and Conventional. More EPF account holders are opting for Shariah.

5 days ago

TheContrarian

During CNY I met Quek and asked him if he were going to make a hostile takeover of Affin, he laughed and laughed and laughed.

5 days ago

TheContrarian

I am totally out of Affin and made a gain of around RM70k. Now I am in Bank Islam.

5 days ago

aklobi

@TheContrarian, will there be any market correction on the horizon soon?

5 days ago

TheContrarian

I am expecting a mid-March market correction.

5 days ago

chamlo

Why Bursa not yet announce? TheEdge news not reliable?

Posted by TheContrarian > 1 hour ago | Report Abuse

Sarawak is paying RM2.40 based on leaked documents.

5 days ago

TheContrarian

@chamlo, the sale from LTAT to Sarawak is awaiting Bank Negara approval.

5 days ago

TheContrarian

New Defense Minister is not happy with the proposed sale, maybe he doesn't want to sell 25% but less or maybe he thinks Sarawak is shortchanging LTAT at RM2.40 and is demanding a higher price.

5 days ago

TheContrarian

The market is reacting positively to the departure of 3 key LTAT personnel.

5 days ago

calvintaneng

Blog: A LOOK AT DIVIDEND PERFORMANCE BETWEEN PALM OIL & BANKS, Calvin Tan

https://klse.i3investor.com/web/forum/forum-thread/608619778

5 days ago

metaverse

United States elections, Tuesday, 5 November 2024

What Is the Presidential Election Cycle Theory? The theory suggests that markets perform best in the second half of a presidential term when the sitting president tries to boost the economy to get re-elected.

https://www.investopedia.com/terms/p/presidentialelectioncycle.asp


ERDOGAN’S ECONOMIC POLICIES
Turkey has been plagued by a currency crisis and skyrocketing inflation since 2021, which economists say are the result of Erdogan’s unorthodox belief that raising interest rates will increase inflation. Simsek said Turkey had no other option but to return to “rational ground.” In a sign that Erdogan’s new administration might pursue more conventional economic policies, Simsek also said there were no “shortcuts or quick fixes” but vowed to oversee Turkey’s finances with “transparency, consistency, accountability and predictability.”

https://apnews.com/article/why-is-turkeys-currency-falling-erdogan-1faf7d58144fc84479c251c3fdeabe2a

5 days ago

metaverse

Those who bet on Affin are banking on the mega projects in Sarawak (which is also trying to invite the Harvard of China not sure is Tsinghua University or Fudan University to open up a branch in Sarawak). Those with basic economic knowledge will know that weakening ringgit is a dangerous sign for economic crisis as the main problem is the US carry trade and local interest rate has lagged behind the curve which caused the hot money reverted back to US shore. Instead of collecting data for PADU, the minister of economy should collect data to determine which companies are exposed to high debts and whether or not these companies will cause systematic risks to our banking system. It seemed that our minister of economy was not trained in Economics 101 as he kind of saying that falling ringgit is good for the economy as it will attract more foreign investors to invest in Malaysia but this argument made no sense at all as foreign investors will not come to Malaysia for cheap ringgit (the yield of ringgit is too low) as foreign investors only interested to know whether our high school students are well educated and our labor are competitive enough to produce good quality products for them to sell at international marketplace but first of all we need to well verse in international language or else how can we write Python programming to control an automated machines invented by these foreign investors. Why is falling ringgit bad for local company? AirAsia's cost structure was 40% jet fuel and jet fuel is traded in USD but AirAsia's air tickets are priced in ringgit so last time they can collect RM3.8 to pay for USD1 of jet fuel and now they have to collect RM4.8 to pay for USD1 of jet fuel and that will reduce their capacity to serve their loans so the minister of economy must collect data and do simulation to see the falling effect of ringgit to the household sectors as they are highly exposed to loans and may cause systematic risk to banking sectors just like last time 97 Asian Crisis was caused by the nonperforming corporate loans.

5 days ago

rohank71

will affin declare a special Dividen before the takeover from Swak?

4 days ago

sell

EPF selling only Bursa news.

4 days ago

sell

2024-02-26

Insider

EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 609,900 shares on 21-Feb-2024.

2024-02-22

Insider

EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 768,000 shares on 19-Feb-2024.

4 days ago

sell

LTAT CFO become interim CEO is it good?

4 days ago

LubeTrader

I'd be surprised if they propose any dividend at all much less a special one. Of course I'd be happy if they do as their policy dictates. We shall see in due time.

3 days ago

TheContrarian

Affin QR out, declares final dividend.

2 days ago

rohank71

bad results.. price doesn't drop. wonder why or should I say, price now a factor of Swak deal and not earnings.

2 days ago

LubeTrader

Not conspiring to mislead, the Sarawak factor has overshadowed the financial results.

1 day ago

rohank71

true #Lube... looks like results not important.

1 day ago

TheContrarian

Defense Minister is asking for a higher price from Sarawak of RM2.60 per share or else there's no approval. Those LTAT people who negotiated a price of RM2.40 have since resigned.

1 day ago

rohank71

#contarian...the reason LTAT people resign nothing to do with Affin. its all abt the Mutiara Dsara land. the plot where IKEA +Tesco + Others is in.. abt 30 acres... Desmond of Pavilion has partnered a powerful close associate of Def Minister and wanting to buy the 30 acres at half price. 30 acres commercial land in Mutiara @ 700psf is 30M per acre or 900M.. that's much higher than the 20sen in Affin which LTAT has.

22 hours ago

rohank71

every 10 sen in Affin is just 70M.. 450M is 65sen in Affin... pls la Affin is a done deal... no one wants it... BNM happy to let Swak take it.

22 hours ago

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