“Our stock picks for the sector are Public Bank and Hong Leong Bank (strong asset qualities), RHB (higher fee income growth), and AMMB (attractive valuation), ” CGS-CIMB Research said.
KUALA LUMPUR: CGC-CIMB Equities Research upgrades Malaysian banks from Neutral to Overweight as it expects net profit growth to recover in 2021F to 14.7% (vs. -18.7% in 2020F).
It said that banks’ valuations are attractive, at CY21F P/E of 10.5 times and CY20F price-to-book value (P/BV) of one time (all-time low).
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