SECTOR FOCUS OF THE DAY
Banking Sector: Higher business loan growth and loan applications OVERWEIGHT
Industry loan growth increased to 4.8%YOY with a higher household and non-household loan growth. On a year-to-date (YTD) basis, industry loan growth was unchanged at 4.8% annualised. We maintain our loan projection of a 5.0% growth for 2018 premised on a GDP growth of 5.5%.
Improvement in growth of loan applications. April 2018 saw the growth in industry loan applications improving further to 20.1%YoY vs. 0.02%YoY and -5.8%YoY in Mar and Feb 2018 respectively. Growth in non-household loan applications picked up pace to 34.7%YoY in Apr 2018 compared to 11.4%YoY in Mar 2018. Meanwhile, household loan applications expanded at a faster pace of 10.1%YoY.
Maintain OVERWEIGHT on the sector. Our BUY calls are RHB Bank (FV: RM6.20/share), Public Bank (FV: RM26.20/share), Alliance Bank (FV: RM5.00/share), BIMB Holdings (FV: RM5.40/share) and CIMB (FV: RM7.00/share).
Others:
MISC: Prospective tanker recovery later this year HOLD
RETAIL RESEARCH
Stocks On Radar: Dialog Group, D&O Green Technologies, CAB Cakaran, Star Media
ECONOMIC HIGHLIGHT
Indonesia: Steady rupiah, slower inflation provide room for rate hike pause
NEWS HIGHLIGHTS
Berjaya Land: Sells stake in Vietnam firm for RM155mil
MyEG: Shares plunge amid threat from new players
LBS Bina: To go ahead with Zhuhai project
Green Packet: Still eyeing a profitable FY18
DISCLAIMER:
The information and opinions in this report are prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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