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20.16March 22, 2022Hong Leong BankBUY(HLBK MK)Much room for provisionwrite-backsBUY maintainedBanksMYR 20.1612m Price TargetMYR 24.70 ( 25%)Previous Price TargetMYR 24.70Company DescriptionWhat stands out for HL Bank is i) its large stockpile of pre-emptiveprovisions that could potentially be written back, (ii) the expectedsustained robust loans growth of 5% and (iii) material contribution ( 20%)from 18%-owned Bank of Chengdu. To this end, we project a 2-year (FY22EFY24E) earnings CAGR of 10%, with potential upside as and when preemptive provisions are written back. MYR24.70 TP maintained – CY23 PBVof 1.4x (CY23 ROE: 11.2%).MalaysiaShare PriceLoans under PRA have declined furtherHL Bank’s percentage of loans under Payment Relief Assistance (PRA) isthe lowest among the banks in our coverage at just 6% (MYR9.6b) of totalloans in Jan 2022, versus a peer average of about 14%. This percentage hassince reduced further to just 4% or MYR6.4b. HL Bank’s pre-emptiveprovisions of MYR873m account for 83% of its total provisions put throughover the past two years and loan loss coverage of 251% is very comfortable.Very comfortable pre-emptive provision levelsOur stress test on the banks in our coverage assumed a default rate of 20%on PRA loans and a loss on default of 30%. We find that HL Bank has thehigher percentage of loan loss coverage over potential PRA loan defaultsin our stressed scenario at over 230%, against a peer average of just 110%.This is very encouraging for it does imply that HL Bank has potentially themost amount of provisions to write-back, as and when the economyrecovers and asset quality stabilises. Its credit cost guidance of 10bps forFY22 is the lowest in the industry.Hong Leong Bank offers integrated financial servicesand is predominantly a retail bank. It also holds an18% stake in Bank of Chengdu, China.Statistics52w high/low (MYR)3m avg turnover (USDm)Free float (%)Issued shares (m)Market USD10.4BMajor shareholders:Hong Leong Financial Group Bhd.Employees Provident FundHong Leong Bank Bhd.62.1%9.2%3.7%Price 13015.012014.011013.010012.0Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-2190Maintaining stake in BOCHong Leong Bank - (LHS, MYR)Hong Leong Bank / Kuala Lumpur Composite Index - (RHS, %)Investors will recall that Bank of Chengdu (BOC) has issued convertiblebonds as part of its capital raising exercise and HL Bank has subscribed toits portion in full. This is positive, for it does mean that HL Bank willcontinue to maintain its 18% stake in the China bank, which is a materialcontributor, at about 22% to 1HFY22 group earnings. Impact to its CET1ratio is estimated to be about 16bps, which would take its end-Dec 2021CET1 ratio down to 12.9% from 13.1% currently, which is still comfortable.FYE Jun (MYR m)FY20AFY21AFY22EFY23EFY24EOperating incomePre-provision profitCore net profitCore EPS (MYR)Core EPS growth (%)Net DPS (MYR)Core P/E (x)P/BV (x)Net dividend yield (%)Book value (MYR)ROAE (%)ROAA (%)Consensus net profitMKE vs. Consensus 16.7611.51.53,9682.0-1M-3M-12MAbsolute (%)196Relative to index (%)138Source: FactSetDesmond Ch'ng, BFP, FCAdesmond.chng@maybank-ib.com(603) 2297 8680THIS REPORT HAS BEEN PREPARED BYMAYBANK INVESTMENT BANK BERHADSEE PAGE 9 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONSPP16832/01/2013 (031128)
Hong Leong BankRisk Rating & Score¹Score Momentum²Last UpdatedControversy Score³(Updated: 12 Aug 2020)desmond.chng@maybank-ib.com24.3-3.307 Oct 20210Business Model & Industry Issues HL Bank has consistently maintained one of the lowest impaired loans in the industry and one of the most liquid balance sheets.This, in our view, is testimony to strong management capabilities and the group’s emphasis on corporate governance.The banking sector is one of the transmission mechanisms for government stimulus programs under COVID-19 relief schemes.Targeted Repayment Assistance under the PEMULIH and URUS programmes are ongoing, and the TRA elevates social prioritiesover shareholders returns in the near term.HL Bank displays no exceptional risks not typical of a large bank for ESG. That the bank is principally a retail bank with limitedcorporate lending exposure significantly reduces its environment and corporate governance issues, in our view.Material E issues With its “Digital at the Core” ethos, 2 out of 3 of its over2m online and mobile banking customers are monthly activeusers. In FY21, the digitally enabled customer base grew by11% and 22% respectively, with average monthlytransactions increasing 33% and 54% respectively.It has introduced a reduction target of 15-25% by 2026 and40-50% by 2031 for its Scope 1 and 2 emissions.HL Bank is a constituent of the FTSE4Good Index. It has beeninternally rated by RAM Sustainability with a “Gold” ratingin overall ESG aspects. It ranks above average on the WWFSustainable Banking Assessment.Based on the bank’s initial sector screening in Dec 2020,18% of its portfolio were deemed to be from high E&S risksectors, mainly manufacturing (7%), palm oil (6%) andmetals/mining & quarrying (3%). However, preliminaryscreening results show that 50% of these could transitionto medium or low risk based on mitigating factors.In FY21, it had sector lending guidelines for four sectors –forestry, metals and mining, quarrying, non-renewableenergy and palm oil. This will soon be extended to theagriculture, fisheries, selected manufacturing as well asrecycling and waste treatment sectors.Material S issues Key G metrics and issues Hong Leong Bank has not had any material accounting &tax, lobbying & public policy, sanctions related, dataprivacy or security controversies in the past 5 years.Hong Leong Bank has consistently maintained one of thehighest levels of asset quality in the industry as well as oneof the most liquid balance sheets with an internalloan/deposit ratio cap of 85%.The CEO’s remuneration was MYR14.6m in FY21,representing 0.4% of the group’s pretax profit.The Board of Directors comprises 1 Executive Director and7 Non-Executive Directors, of whom six are IndependentNon-Executive Directors.The group discloses the remuneration of each individualDirector in its annual report.IT expenses amounted to MYR186m in FY21, representinga higher 9.0% total operating expenses (8.3% in FY20).HL Bank is audited by PricewaterhouseCoopers, the world’ssecond largest network of professional firms. PwC has beentheir auditors over the past 10 years, at the very least.HL Bank has an 18% stake in China’s Bank of Chengdu(BOC), which accounted for a significant 22% of grouppretax profit in FY20. Although HL Bank has two Boardrepresentatives at BOC, there is no guarantee that HL Bankcan influence the ESG direction of BOC, in our view. BOCis a separately listed entity on the Shanghai StockExchange.In FY21, employee turnover at HL Bank was 818 (937 inFY20, 1,196 in FY19) versus new hires of 866 (1,075 in FY20,1,310 in FY19).In FY21, the bank approved MYR22.3b worth of pandemicrelief assistance for over 97,000 retail, SME and corporatecustomers. This included relief assistance to over 20kcustomers from the B40 community, totalling MYR2b.HL Bank’s female employees outnumber male employees,with the former accounting for 62.6% of total employees inFY21. In FY21, 3 of the 8 Board of Directors members werefemale.¹Risk Rating & Score - derived by Sustainalytics and assesses the company’s exposure to unmanaged ESG risks. Scores range between 0 - 50 in order of increasingseverity with low/high scores & ratings representing negligible/significant risk to the company’s enterprise value, respectively, from ESG-driven financial impacts. ²ScoreMomentum - indicates changes to the company's score since the last update – a negative integer indicates a company’s improving risk score; a positive integer indicatesa deterioration. ³Controversy Score - reported periodically by Sustainalytics in the event of material ESG-related incident(s), with the impact severity scores of theseevents ranging from Category 0-5 (0 - no reports; 1 - negligible risks; .; 5 - poses serious risks & indicative of potential structural deficiencies at the company).March 22, 20222
Hong Leong BankLoans under PRA have reduced further in MarchHL Bank’s percentage of loans under Payment Relief Assistance (PRA) was alreadythe lowest among the banks in our coverage at just 6% (MYR9.6b) of total loans inJan 2022, versus a peer average of about 14%. This percentage has since reducedfurther to just 4% in Feb 2022 or MYR6.4b.Highest provision coverage against PRA loansHL Bank’s pre-emptive provisions of MYR873m account for a sizeable 83% of totalprovisions put through over the past two years. We carried out a stress test on thebanks in our coverage, which assumed a default rate of 20% on PRA loans ofMYR9.6b (6% of total loans) and a loss on default of 30%. What we find is that HLBank has the higher percentage of loan loss coverage over these loans at over 230%,against a peer average of just 110%. This is very encouraging for it does imply thatHL Bank has potentially the most amount of provisions to write-back, as and whenthe economy recovers and asset quality stabilises. Its credit cost guidance of 10bpsfor FY22 is in fact, the lowest in the industry.Robust loan growth sustainable into FY23HL Bank’s loan growth of 6.7% YoY end-Dec 2021 was driven by robust regionalgrowth ( 26.6% YoY) and domestic loan growth of 5.6% (industry loan growth of4.5%). In Singapore, loan growth of 16-17% was led predominantly by commerciallending, auto hire purchase (HL Bank has a 10% market share) and working capitallines.Domestically, mortgage loan stock jumped 20% YoY in Dec 2021, and SME loangrowth of 17% YoY in Dec 2022 was driven by BAU demand and not so much fromthe Special Relief Facility, with demand coming from sectors such as the foodindustries.In Singapore, 16-17% loan growth in 1HFY22 was not led by mortgages, but fromcommercial. auto (HL Bank has 10% of the market) and working capital loans.Management believes it that its loan growth guidance of 6-7% for FY22 could extendto FY23 as well, given a) the strong stockpile of mortgage applications that it has,b) the switch in auto HP focus to more national cars and c) still robust growth inthe SME loan demand.On the SME front, the bank has been successful in penetrating SMEs because a) ithas set up new desks and branch conversions for greater focus on SME relationships,b) it had previously only reached out to 20% of SMEs that had deposits with thebanks.Stable margins expectedAs with most other banks, HL Bank expects only one rate hike and in 4Q22. Every25bps expansion in the OPR improves its NIM by 2-3bps. It has seen some fixeddeposit competition of late, but not major, and management expect NIMs tosustain into 2HFY22 (currently guiding for 2.1% in FY22 (2.16% in 1HFY22)).Initiatives eg a) HL Connect First for SMEs - transactional cash managementbanking, payroll solutions, accounting solutions etc, b) Pocket Junior account forconsumers, have helped grow CASA to 33% of total deposits now from 26% before.A CASA ratio of above 30% is deemed sustainable.March 22, 20223
Hong Leong BankRisk of MTM losses reducedAs at end-Dec 2021, HL Bank had 42% of its investments classified at amortisedcost, the highest among the domestic banks. This would imply that the risk ofmarked-to-market losses stemming from rising bond yields is lower than that of itspeers. However, with 13% of such investments classified at fair value to profit &loss (FVTPL), this percentage is higher than that of Public Bank, Alliance Bank andRHB Bank that only have 1-4% of their investments classified as such.Operating expenses likely to riseHL Bank’s personnel costs declined 7% YoY in 1HFY22 due in large part to branchclosures but some of the personnel have been deployed to beef up its sales force.It is also seeing savings from past digital spend (e.g. 92% of retail transactions arenow online). The bank thinks that a cost/income ratio (CIR) of 38-40% would be acomfortable range. It has 237 branches currently and will monitor to see if furtherclosures make sense. Digital capex is about MYR200m per annum.Cukai Makmur partially booked inIn 1HFY22, HL Bank had already booked in MYR129m worth of Cukai Makmur forthe first six months of FY22. Without this, net profit would have jumped 23% YoYand ROE would have been 11.6%, against a reported ROE of 10.7%.Stake in Bank of Chengdu maintainedInvestors will recall that Bank of Chengdu (BOC) has issued convertible bonds aspart of its capital raising exercise and HL Bank has subscribed to its portion in full.This is positive, for it does mean that HL Bank will continue to maintain its 18%stake in the China bank, which is a material contributor, at about 22% to 1HFY22group earnings. Impact to its CET1 ratio is estimated to be about 16bps, whichwould take its end-Dec 2021 CET1 ratio down to 12.9% from 13.1% currently, whichis still comfortable.March 22, 20224
Hong Leong BankFigure 2: Foreign shareholding in HL Bank (9.8% end-Dec e: BankRisk statementThere are several risk factors for our earnings estimates, price target, and ratingfor HL Bank. Any slowdown in the domestic economy would have a negative impacton the group’s earnings, as would a pick-up in deposit rate competition.Meanwhile, a deterioration in China’s economic outlook, particularly in theSichuan Province where associate Bank of Chengdu is located, would negativelyimpact associate contributions.Figure 3: One-year forward rolling PER (x)Figure 4: One-year forward rolling P/BV (x)18.0 1sd: 13.8x16.02.5 1sd: 1.7xmean: 12.1x14.02.012.01.5mean: 1.5x-1sd: 1.2x10.01.0-1sd: 10.3x8.00.5Source: Bloomberg, Maybank IBG ResearchMarch 22, an-13Jan-12Jan-11Jan-10Jan-09Jan-086.0Source: Bloomberg, Maybank IBG Research5
Hong Leong BankFYE 30 JunKey MetricsCore P/E (x)Core FD P/E (x)P/BV (x)P/NTA (x)Net dividend yield (%)INCOME STATEMENT (MYR m)Interest incomeInterest expenseNet interest incomeIslamic banking incomeNet insurance incomeNet fees and commissionOther incomeTotal non-interest incomeOperating incomeStaff costsOther operating expensesOperating expensesPre-provision profitLoan impairment allowancesOther allowancesAssociates & JV incomePretax profitIncome taxMinoritiesDiscontinued operationsReported net profitCore net profitBALANCE SHEET (MYR m)Cash & deposits with banksSec. under resale agreementsDerivatives financial assetsDealing securitiesAvailable-for-sale securitiesInvestment securitiesLoans & advancesCentral bank depositsInvestment in associates/JVsInsurance assetsFixed assetsIntangible assetsOther assetsTotal assetsDeposits from customersDeposits from banks & FIsDerivatives financial instrumentsSubordinated debtOther securities in issueOther borrowingsInsurance liabilitiesOther liabilitiesTotal liabilitiesShare capitalReservesShareholders' fundsPreference sharesMinority interestTotal equityTotal liabilities & equityMarch 22, 1278,729.46
Hong Leong BankFYE 30 JunKey RatiosGrowth (%)Net interest incomeNon-interest incomeOperating expensesPre-provision profitCore net profitGross loansCustomer depositsTotal .74.54.54.9Profitability (%)Non-int. income/Total incomeAverage lending yieldsAverage cost of fundsNet interest 03.502.122.1135.1Liquidity (%)Loans/customer 711.51.513.0Asset quality (%)Net NPLGross NPL(SP GP)/average gross loansLoan loss coverageCapital adequacy (%)CET1Tier 1 capitalRisk-weighted capitalReturns (%)ROAEROAAShareholders equity/assetsSource: Company; Maybank IBG ResearchMarch 22, 20227
Hong Leong BankResearch OfficesECONOMICSREGIONAL EQUITIESSINGAPOREINDIASuhaimi ILIASChief EconomistMalaysia Philippines Global(603) 2297 8682suhaimi ilias@maybank-ib.comAnand PATHMAKANTHANHead of Regional Equity Research(603) 2297 8783anand.pathmakanthan@maybank-ib.comThilan WICKRAMASINGHE Head of Research(65) 6231 5840 thilanw@maybank.com Banking & Finance - Regional ConsumerJigar SHAH Head of Research(91) 22 4223 2632 jigars@maybank.com Strategy Oil & Gas Automobile CementWONG Chew Hann, CAHead of ASEAN Equity Research(603) 2297 8686wchewh@maybank-ib.comCHUA Su Tye(65) 6231 5842 chuasutye@maybank.com REITs - RegionalCHUA Hak BinRegional Thematic Macroeconomist(65) 6231 5830chuahb@maybank.comLEE Ju YeSingapore Thailand Indonesia(65) 6231 5844leejuye@maybank.comDr Zamros DZULKAFLI(603) 2082 6818zamros.d@maybank-ib.comFatin Nabila MOHD ZAINI(603) 2297 8685fatinnabila.mohdzaini@maybank-ib.comBrian LEE Shun Rong(65) 6231 5846brian.lee1@maybank.comLuong Thu Huong(65) 62315 8467hana.thuhuong @maybank.comFXSaktiandi SUPAATHead of FX Research(65) 6320 1379saktiandi@maybank.com.sgChristopher WONG(65) 6320 1347wongkl@maybank.com.sgONG Seng YeowResearch, Technology & Innovation(65) 6231 5839ongsengyeow@maybank.comMALAYSIAAnand PATHMAKANTHAN Head of Research(603) 2297 8783anand.pathmakanthan@maybank-ib.com StrategyWONG Chew Hann, CA(603) 2297 8686wchewh@maybank-ib.com Non-Bank Financials (stock exchange) Construction & InfrastructureONG Chee Ting, CA(603) 2297 8678 ct.ong@maybank-ib.com Plantations - RegionalMiguel SEVIDAL(63) 2 8849 8844miguel.sevidal@maybank.com REITs PropertySTRATEGYWONG Wei Sum, CFA(603) 2297 8679 weisum@maybank-ib.com Property GloveJade TAM(603) 2297 8687 jade.tam@maybank-ib.com Consumer Staples & DiscretionaryNur Farah SYIFAA(603) 2297 8675nurfarahsyifaa.mohamadfuad@maybank-ib.com Construction Renewable Energy REITsArvind JAYARATNAM(603) 2297 8692arvind.jayaratnam@maybank.com Petrochemicals TechnologyShafiq KADIR(603) 2297 8691msshafiqk.abkadir@maybank-ib.com Healthcare SoftwareLOH Yan Jin(603) 2297 8687lohyanjin.loh@maybank-ib.com Ports ShippingTEE Sze Chiah Head of Retail Research(603) 2082 6858 szechiah.t@maybank-ib.com Retail ResearchNik Ihsan RAJA ABDULLAH, MSTA, CFTe(603) 2297 8694nikmohdihsan.ra@maybank-ib.com ChartistAmirah AZMI(603) 2082 8769 amirah.azmi@maybank-ib.com Retail ResearchMarch 22, 2022Jacqui de JESUS Head of Research(63) 2 8849 8840jacqui.dejesus@maybank.com Strategy ConglomeratesDaphne SZE(63) 2 8849 8847daphne.sze@maybank.com ConsumerTAN Chi Wei, CFA(603) 2297 8690 chiwei.t@maybank-ib.com Power TelcosSE THO Mun Yi, CFA(603) 2074 7606munyi.st@maybank-ib.comPHILIPPINESLIAW Thong Jung(603) 2297 8688 tjliaw@maybank-ib.com Oil & Gas Services- Regional AutomotiveFiona LIM(65) 6320 1374fionalim@maybank.com.sgWinson PHOON, FCA(65) 6340 1079winsonphoon@maybank.comKelvin TAN(65) 6231 5837 kelvintan1@maybank.com TelcosRachelleen RODRIGUEZ, CFA(63) 2 8849 8843rachelleen.rodriguez@maybank.com Banking & Finance Transport TelcosYIN Shao Yang, CPA(603) 2297 8916 samuel.y@maybank-ib.com Gaming – Regional Media Aviation Non-Bank FinancialsFIXED INCOMEEric ONG(65) 6231 5924 ericong@maybank.com Healthcare Transport SMIDsDesmond CH’NG, BFP, FCA(603) 2297 8680desmond.chng@maybank-ib.com Banking & FinanceTAN Yanxi(65) 6320 1378tanyx@maybank.com.sgAnand PATHMAKANTHANASEAN(603) 2297 8783anand.pathmakanthan@maybank-ib.comLAI Gene Lih, CFA(65) 6231 5832 laigenelih@maybank.com TechnologyFiorenzo de JESUS(63) 2 8849 8846fiorenzo.dejesus@maybank.com UtilitiesVIETNAMQuan Trong Thanh Head of Research(84 28) 44 555 888 ext 8184thanh.quan@maybank.com BanksHoang Huy, CFA(84 28) 44 555 888 ext 8181hoanghuy@maybank.com Strategy Technology IndustrialsLe Nguyen Nhat Chuyen(84 28) 44 555 888 ext 8082chuyen.le@maybank.com Oil & Gas LogisticsNguyen Thi Sony Tra Mi(84 28) 44 555 888 ext 8084trami.nguyen@maybank.com ConsumerTyler Manh Dung Nguyen(84 28) 44 555 888 ext 8085manhdung.nguyen@maybank.com Utilities PropertyNguyen Thi Ngan TuyenHead of Retail Research(84 28) 44 555 888 ext 8081tuyen.nguyen@maybank.com Retail ResearchNguyen Thanh Lam(84 28) 44 555 888 ext 8086thanhlam.nguyen@maybank.com ChartistNeerav DALAL(91) 22 4223 2606 neerav@maybank.com Software Technology TelcosVikram RAMALINGAM(91) 22 4223 2607vikram@maybank.com Automobile MediaINDONESIARahmi MARINA(62) 21 8066 8689rahmi.marina@maybank.com Banking & FinanceWilly GOUTAMA(62) 21 8066 8500willy.goutama@maybank.com ConsumerSatriawan, CTA(62) 21 8066 8682satriawan@maybank.com ChartistTHAILANDMaria LAPIZ Head of Institutional ResearchDir (66) 2257 0250 (66) 2658 6300 ext 1399Maria.L@maybank.com Strategy Consumer Materials ServicesJesada TECHAHUSDIN, CFA(66) 2658 6300 ext 1395jesada.t@maybank.com Banking & FinanceVanida GEISLER, CPA(66) 2658 6300 ext 1394Vanida.G@maybank.com Property REITsYuwanee PROMMAPORN(66) 2658 6300 ext 1393Yuwanee.P@maybank.com Services HealthcareEkachai TARAPORNTIP Head of Retail Research(66) 2658 5000 ext 1530Ekachai.t@maybank.comSurachai PRAMUALCHAROENKIT(66) 2658 5000 ext 1470Surachai.p@maybank.com Auto Conmat Contractor SteelSuttatip PEERASUB(66) 2658 5000 ext 1430suttatip.p@maybank.com Food & Beverage CommerceJaroonpan WATTANAWONG(66) 2658 5000 ext 1404jaroonpan.w@maybank.com Transportation Small capThanatphat SUKSRICHAVALIT(66) 2658 5000 ext 1401thanaphat.s@maybank.com Media ElectronicsWijit ARAYAPISIT(66) 2658 5000 ext 1450wijit.a@maybank.com StrategistTheerasate PROMPONG(66) 2658 5000 ext 1400theerasate.p@maybank.com Equity Portfolio StrategistApiwat TAVESIRIVATE(66) 2658 5000 ext 1310apiwat.t@maybank.com Chartist and TFEX8
Hong Leong BankAPPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURESDISCLAIMERSThis research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitationof an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinionsor recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply differentmethodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returnsmay be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and doesnot take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seekfinancial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, itssubsidiary and affiliates (collectively, “Maybank IBG”) and consequently no representation is made as to the accuracy or completeness of this report by Maybank IBG and it should not berelied upon as such. Accordingly, Maybank IBG and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct,indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change atany time, without prior notice.This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”,“forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Suchforward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results todiffer materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. Maybank IBG expresslydisclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect theoccurrence of unanticipated events.Maybank IBG and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to timeparticipate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position orholding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securitiesmentioned in the material presented in this report. One or more directors, officers and/or employees of Maybank IBG may be a director of the issuers of the securities mention ed in thisreport to the extent permitted by law.This report is prepared for the use of Maybank IBG’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in anyform or manner without the prior express written consent of Maybank IBG and Maybank IBG and its Representatives accepts no liability whatsoever for the actions of third parties in thisrespect.This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction wheresuch distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law.The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additionaldisclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.MalaysiaOpinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuationsapply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.SingaporeThis report has been produced as of the date hereof and the information herein may be subject to change. Maybank Research Pte. Ltd . (“MRPL”) in Singapore has no obligation to updatesuch information for any recipient. For distribution in Singapore, recipients of this report are to contact MRPL in Singapore in respect of any matters arising from, or in connection with, thisreport. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), MRPLshall be legally liable for the contents of
Hong Leong Bank offers integrated financial services and is predominantly a retail bank. It also holds an 18% stake in Bank of Chengdu, China. Hong Leong Financial Group Bhd. Employees Provident Fund Hong Leong Bank Bhd. 20.64/17.40 MYR43.7B USD10.4B Price Performance 90 100 110 120 130 140 150 160 170 180 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19 .
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