Hong Leong Bank / Quek Leng Chan

[winston]

vested

Hong Leong Bank (HLBK MK)
Share Price: MYR15.18
Target Price: MYR17.40
Recommendation: Buy

1HFY20 results above expectations

HL Bank continues to be a very stable and well-managed retail bank with superior fundamentals relative to many of its peers.

These include ROEs of above 10%, which are sustainable in the medium term, in our view.

With the decline in its share price, we upgrade the stock to BUY, but with a marginally lower TP of MYR17.40 (-50sen, CY20 PBV target of 1.3x, ROE: 10.4%).

Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 21857d.pdf

[winston]

vested

Hong Leong Bank (HLBK MK)

1HFY20: Solid Loans Growth And Cost Management

HLBK’s 1HFY20 was above expectations, driven by lower-than-expected provisions and solid operating cost management.

2QFY20 pre-provision operating profit growth came in at a solid 12.5% yoy.

Share price was recently impacted by fears that the coronavirus would impact its associate Bank of Chengdu’s performance, which has held up relatively well.

Maintain BUY with a lower target price of RM18.96 (1.47x FY20F P/B, 10.0% ROE) as we build in the high probability of another 25bp OPR cut in 1H20.

Source: UOBKH

https://research.uobkayhian.com/content ... a6a3e35230