Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>RHB Bank is now our sole pick in Malaysian banks, topping our proprietary scorecard; it retains strong fundamental value credentials, with an improving cost of risk trend</li>
<li>We downgrade CIMB shares to a hold from a buy; the valuations are less compelling than RHB and it has further to improve on credit quality and returns</li>
<li>PB Bank is a name to watch for its sustained premium returns, and for its position as the peer group benchmark in terms of ROE, credit quality and efficiency ratio</li>
</ul>


RHB Bank is now our sole pick in Malaysian banks, topping our proprietary scorecard; it retains strong fundamental value credentials, with an improving cost of risk trend
We downgrade CIMB shares to a hold from a buy; the valuations are less compelling than RHB and it has further to improve on credit quality and returns
PB Bank is a name to watch for its sustained premium returns, and for its position as the peer group benchmark in terms of ROE, credit quality and efficiency ratio


Malaysian Banks; Stick with RHB Bank, Downgrading CIMB

<ul>
<li>RHB Bank remains our Malaysian bank top pick, as shown in our scorecard; CIMB shares have de-rated markedly year-to-date and are deep value</li>
<li>Scorecard topping RHB Bank has strong fundamental value credentials and it is narrowing the gap on returns with peers, whilst also improving its delinquency ratio</li>
<li>CIMB ranks third on our scorecard, due to its high NPL ratio but credit quality is improving; we see scope for operating efficiency gains and it has very attractive valuations</li>
</ul>


RHB Bank remains our Malaysian bank top pick, as shown in our scorecard; CIMB shares have de-rated markedly year-to-date and are deep value
Scorecard topping RHB Bank has strong fundamental value credentials and it is narrowing the gap on returns with peers, whilst also improving its delinquency ratio
CIMB ranks third on our scorecard, due to its high NPL ratio but credit quality is improving; we see scope for operating efficiency gains and it has very attractive valuations


Malaysian Banks Screen; Stick with RHB Bank and CIMB

<ul>
<li>RHB Bank is our Malaysian bank top pick, with its real turnaround potential for returns; CIMB remains a buy but is less compelling than RHB given its marked re-rating year-to-date</li>
<li>Our new buy RHB Bank is stand-out value versus its Malaysian peers and it is improving returns from low levels; its main delinquency challenges are concentrated in small overseas portfolios</li>
<li>We reiterate our buy on CIMB; management continues to drive credit quality with cost of risk improvements, and we see potential for operating efficiency gains, combined with its attractive valuations</li>
</ul>


RHB Bank is our Malaysian bank top pick, with its real turnaround potential for returns; CIMB remains a buy but is less compelling than RHB given its marked re-rating year-to-date
Our new buy RHB Bank is stand-out value versus its Malaysian peers and it is improving returns from low levels; its main delinquency challenges are concentrated in small overseas portfolios
We reiterate our buy on CIMB; management continues to drive credit quality with cost of risk improvements, and we see potential for operating efficiency gains, combined with its attractive valuations


Malaysian Banks Screen; RHB Bank Upgraded to a Buy, Alongside Existing Buy on CIMB

<ul>
<li>We downgrade <a href="https://www.smartkarma.com/entities/rhb-bank-bhd" target="_blank" data-smartkarma-citation="entities:24161:1" rel="noopener">RHB Bank Bhd (RHBBANK MK)</a> , our sole buy in Malaysian banks, to a neutral from a buy rating</li>
<li>Despite its attractive valuation credentials, RHB Bank, has not been one of our successful buy picks; nonetheless, quarter-to-date it has delivered a small positive (+2%) USD return</li>
<li>Despite global market relief from another US-China tariff deadline extension, we believe that in the case of Malaysian banks, and RHB in particular, near-term positive catalysts are largely absent</li>
</ul>


We downgrade RHB Bank Bhd (RHBBANK MK) , our sole buy in Malaysian banks, to a neutral from a buy rating
Despite its attractive valuation credentials, RHB Bank, has not been one of our successful buy picks; nonetheless, quarter-to-date it has delivered a small positive (+2%) USD return
Despite global market relief from another US-China tariff deadline extension, we believe that in the case of Malaysian banks, and RHB in particular, near-term positive catalysts are largely absent


RHB Bank (RHBBANK MK) – A Value Stock in Search of Positive Catalysts

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of Bursa stocks as of May 9th which has an aggregated short interest worth USD330m.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Tenaga Nasional, JYC Intl, Axiata, Sunway, Rhb Bank.</li>
</ul>


We analyzed the changes in short interest of Bursa stocks as of May 9th which has an aggregated short interest worth USD330m.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Tenaga Nasional, JYC Intl, Axiata, Sunway, Rhb Bank.


Bursa Short Interest Weekly (May 9th): Tenaga Nasional, JYC Intl, Axiata, Sunway, Rhb Bank

Malaysia

RHB Bank BHD provides banking services. The Company offers commercial and consumer banking, corporate and investment banking, and international banking services. RHB also provides savings accounts, foreign currency accounts, home and travel insurance, and investment planning.

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RHB Bank Bhd (RHBBANK MK)

Malaysian Banks; Stick with RHB Bank, Downgrading CIMB

RHB Bank is our sole pick in Malaysian banks with strong fundamentals, potential to improve returns whilst CIMB is downgraded to hold; PB Bank one...

Victor Galliano

Malaysian Banks Screen; Stick with RHB Bank and CIMB

Scorecard topping RHB Bank is the key pick with attractive valuations, improving returns; CIMB offers deep value with improving credit quality,...

Victor Galliano

Malaysian Banks Screen; RHB Bank Upgraded to a Buy, Alongside Existing Buy on CIMB

RHB Bank is our top pick in Malaysian banks for its value attributes with strong turnaround potential, while CIMB remains the quality buy even...

Victor Galliano

RHB Bank (RHBBANK MK) – A Value Stock in Search of Positive Catalysts

Despite it still retaining some of its value credential, we downgrade RHB Bank to neutral from buy due to lack of near-term positive catalysts;...

Victor Galliano

Bursa Short Interest Weekly (May 9th): Tenaga Nasional, JYC Intl, Axiata, Sunway, Rhb Bank

We analyzed Bursa Malaysia short interest report for the past week and highlighted short interest changes in Tenaga Nasional, JYC Intl, Axiata,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Malaysian Banks; Stick with RHB Bank, Downgrading CIMB

​RHB Bank is our sole pick in Malaysian banks with strong fundamentals, potential to improve returns whilst CIMB is downgraded to hold; PB Bank one...

Victor Galliano

Malaysian Banks Screen; Stick with RHB Bank and CIMB

Scorecard topping ​RHB Bank is the key pick with attractive valuations, improving returns; CIMB offers deep value with improving credit quality,...

Victor Galliano

Malaysian Banks Screen; RHB Bank Upgraded to a Buy, Alongside Existing Buy on CIMB

​RHB Bank is our top pick in Malaysian banks for its value attributes with strong turnaround potential, while CIMB remains the quality buy even...

Victor Galliano

RHB Bank (RHBBANK MK) – A Value Stock in Search of Positive Catalysts

Despite it still retaining some of its value credential, we downgrade ​RHB Bank to neutral from buy due to lack of near-term positive catalysts;...

Victor Galliano

Bursa Short Interest Weekly (May 9th): Tenaga Nasional, JYC Intl, Axiata, Sunway, Rhb Bank

We analyzed Bursa Malaysia short interest report for the past week and highlighted short interest changes in Tenaga Nasional, JYC Intl, Axiata,...

Ke Yan, CFA, FRM

RHB Bank is our sole pick in Malaysian banks with strong fundamentals, potential to improve returns whilst CIMB is downgraded to hold; PB Bank one...

Scorecard topping RHB Bank is the key pick with attractive valuations, improving returns; CIMB offers deep value with improving credit quality,...

RHB Bank is our top pick in Malaysian banks for its value attributes with strong turnaround potential, while CIMB remains the quality buy even...

Despite it still retaining some of its value credential, we downgrade RHB Bank to neutral from buy due to lack of near-term positive catalysts;...