Malaysian banks are likely to witness the next merger and acquisition wave with changes imminent in strategic ownerships, says DBS Vickers Securities.
The target banks would benefit from input the potential stakeholders could bring to the table to improve stand-alone value propositions such as AMMB-ANZ, it said in a research note on Asean banks today.
RHB Capital, one of the cheapest large capitalised banks in Malaysia with attractive valuations, is a bet for an imminent M&A play, DBS Vickers said.
It also said if ANZ were to raise its stake in AMMB, it sould see ANZ play an even greater role in AMMB and this development would also be positive for other banks that may be looking for new foreign strategic stakeholders.
Within emerging Asean, DBS Vickers still preferred Malaysian banks over Thailand and Indonesian banks.
Although it liked Thailand banks for its investment recovery cycle and stronger earnings growth, the event-driven catalysts in Malaysia are more apparent providing both near and longer term valuation upside, it said.
"For our Asean picks, we have replaced Maybank with Hong Leong Bank as our top pick among Malaysians banks for its strength domestically along with Thailand''s Kasikornbank Public Company Ltd, Bank Rakyat Indonesia and OCBC Bank," DBS Vickers said. -- Bernama
The target banks would benefit from input the potential stakeholders could bring to the table to improve stand-alone value propositions such as AMMB-ANZ, it said in a research note on Asean banks today.
RHB Capital, one of the cheapest large capitalised banks in Malaysia with attractive valuations, is a bet for an imminent M&A play, DBS Vickers said.
It also said if ANZ were to raise its stake in AMMB, it sould see ANZ play an even greater role in AMMB and this development would also be positive for other banks that may be looking for new foreign strategic stakeholders.
Within emerging Asean, DBS Vickers still preferred Malaysian banks over Thailand and Indonesian banks.
Although it liked Thailand banks for its investment recovery cycle and stronger earnings growth, the event-driven catalysts in Malaysia are more apparent providing both near and longer term valuation upside, it said.
"For our Asean picks, we have replaced Maybank with Hong Leong Bank as our top pick among Malaysians banks for its strength domestically along with Thailand''s Kasikornbank Public Company Ltd, Bank Rakyat Indonesia and OCBC Bank," DBS Vickers said. -- Bernama
No comments:
Post a Comment