Affin and AFG the remaining target of M&A?

If BNM likes to see more merger into giant entity for the local market and competing regionally. The most likely remaining target for M&A should be Affin and AFG in term of size and relevancy. Unlike Aeon Credit where there is a co-survive focus market due to Aeon Co and motorcycles industry.

With Affin taken over Hwang DBS in the recent M&A exercise. We believe it will be challenging to immediately take on another M&A in near term. However, this create a good chance for accumulation. In term of market price and its NTA. Affin has an edge over AFG on pricing if base on the 1.75 book ratio suggested by market analysts.

With a M&A potentially 6 months to 12 months ahead (if). We believe now Affin should have a target of at least RM 5.00 base on 1.75 times of book ratio. We did not go for its right issue at that time due to our view of over price on Hwang DBS. But with the wave of financial M&A triggered again. We will add on back Affin in months to come.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Create a free website or blog at

Up ↑

%d bloggers like this: