February 21, 2012

CIMB: Affin Holdings - All credit to write-backs

Stock Name: AFFIN
Company Name: AFFIN HOLDINGS BHD
Research House: CIMBPrice Call: SELLTarget Price: 2.79



AffinHoldings - All credit to write-backs

Target RM2.79

Investors should not expect a repeat of the write-backof credit cost that enabled Affin's FY11 net profit to meet expectationsat 102% of our forecast and 104% of consensus numbers. Topline was flattish,reflecting the weak trend for margins and non-interest income. We continueto project only 2.6% EPS growth in FY12, mainly due to the upward reversalof credit cost and weaker loan growth. We continue to peg our target priceat a 10% discount to DDM value and rate Affin an Underperform.

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