Friday, August 5, 2011

OSK Research downgrades AFG to Neutral

KUALA LUMPUR: OSK Research downgraded Alliance Financial Group (AFGB) to Neutral and said the stock has come under the spotlight owing to market speculation of the potential disposal by its substantial shareholders, Temasek and Langkah Bahagia.

'Given that its share price has rallied by some 19.3% over the past 3 months and outperformed the KLCI by 17.7% - and in the process charted a historical high of RM3.75 - we think the stock's valuations are now fair.

'Downgrade to NEUTRAL with our fair value unchanged at RM3.80, based on 1.65x FY12 PBV (13.1% ROE, 9.5% COE and 4% growth rate),' it said in a note Friday, Aug 5.

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