Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>Of the six Malaysian banks screened, we keep value play RHB Bank on the buy list and switch our prior CIMB for Maybank</li>
<li>RHB Bank is our top pick for its undemanding PE and PBV whilst being second from top in post-provision profitability; its high CET1 ratio has not held back its ROE</li>
<li>We drop CIMB from the buy list for its weaker credit quality and low NPL coverage; we upgrade quality pick Maybank to buy for its attractive valuations</li>
</ul>


Of the six Malaysian banks screened, we keep value play RHB Bank on the buy list and switch our prior CIMB for Maybank
RHB Bank is our top pick for its undemanding PE and PBV whilst being second from top in post-provision profitability; its high CET1 ratio has not held back its ROE
We drop CIMB from the buy list for its weaker credit quality and low NPL coverage; we upgrade quality pick Maybank to buy for its attractive valuations


Malaysian Banks Screener; RHB Bank and Maybank Are Buys

Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>
<a href="https://www.smartkarma.com/entities/carsome-group" target="_blank" data-smartkarma-citation="entities:35913:1" rel="noopener">Carsome (CARSOME1 SP)</a>, Malaysia's used-car eCommerce/technology unicorn, has reportedly submitted a confidential IPO filing for a dual listing on Nasdaq and <a href="https://www.smartkarma.com/entities/singapore-exchange-ltd" target="_blank" data-smartkarma-citation="entities:1047:1" rel="noopener">Singapore Exchange</a>.</li>
<li>Carsome has a great ESG story to tell, but needs to be less humble about telling it because pre-IPO ESG messaging can impact IPO valuations, especially for transportation-related deals.</li>
<li>The centerpiece of Carsome's ESG story should be the important (but underappreciated) role of used car markets in decarbonising road transportation, a leading source of carbon emissions.</li>
</ul>



Carsome (CARSOME1 SP), Malaysia's used-car eCommerce/technology unicorn, has reportedly submitted a confidential IPO filing for a dual listing on Nasdaq and Singapore Exchange.
Carsome has a great ESG story to tell, but needs to be less humble about telling it because pre-IPO ESG messaging can impact IPO valuations, especially for transportation-related deals.
The centerpiece of Carsome's ESG story should be the important (but underappreciated) role of used car markets in decarbonising road transportation, a leading source of carbon emissions.


Carsome: A Paradigm of Circular Economy and Unsung Hero in the Decarbonisation of Transportation

<ul>
<li>Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB</li>
<li>CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue</li>
<li>We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy</li>
</ul>


Of the six Malaysian banks screened, we keep quality play Maybank on the buy list and switch our prior buy RHB for CIMB
CIMB is our value pick for its undemanding PE and PBV whilst second from top in post-provision profitability; its credit quality is improving, a positive trend we expect will continue
We maintain quality pick Maybank as a buy for its relatively undemanding valuations, and strong balance sheet credentials in terms of credit quality and capital adequacy


Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick

<ul>
<li>Of the six Malaysian banks screened, we keep value plays <a href="https://www.smartkarma.com/entities/rhb-bank-bhd" target="_blank" data-smartkarma-citation="entities:24161:1" rel="noopener">RHB Bank Bhd (RHBBANK MK)</a> and <a href="https://www.smartkarma.com/entities/cimb-group-holdings-bhd" target="_blank" data-smartkarma-citation="entities:68:1" rel="noopener">CIMB Group Holdings (CIMB MK)</a> on the buy list</li>
<li>RHB Bank is our top pick for its second from top post-provision profitability, for its high CET1 ratio not inhibiting its ROE, and for its undemanding PE and PBV valuations</li>
<li>CIMB remains our deep value pick with its solid CET1 ratio and premium pre-provision returns, despite its weaker credit quality; its modest valuations include a very attractive PEG ratio</li>
</ul>


Of the six Malaysian banks screened, we keep value plays RHB Bank Bhd (RHBBANK MK) and CIMB Group Holdings (CIMB MK) on the buy list
RHB Bank is our top pick for its second from top post-provision profitability, for its high CET1 ratio not inhibiting its ROE, and for its undemanding PE and PBV valuations
CIMB remains our deep value pick with its solid CET1 ratio and premium pre-provision returns, despite its weaker credit quality; its modest valuations include a very attractive PEG ratio


Malaysian Banks Data to June 2023 Screener; Stick with RHB Bank and CIMB

Thematic (Sector/Industry)

<ul>
<li>Among the large-cap EM Asia banks, we recommend CCB in China, HDFC Bank in India, Bank Mandiri in Indonesia and Hana Financial in South Korea</li>
<li>In LatAm, we turn positive on Banco do Brasil, for its big value attributes and lesser political risk; we turn cautious on Bradesco and stay cautious on Banorte in Mexico</li>
<li>Two large-cap names to watch are Credicorp in Peru and Standard Bank of South Africa; both have challenging macro-economic backdrops but sound “bottom up” credentials</li>
</ul>


Among the large-cap EM Asia banks, we recommend CCB in China, HDFC Bank in India, Bank Mandiri in Indonesia and Hana Financial in South Korea
In LatAm, we turn positive on Banco do Brasil, for its big value attributes and lesser political risk; we turn cautious on Bradesco and stay cautious on Banorte in Mexico
Two large-cap names to watch are Credicorp in Peru and Standard Bank of South Africa; both have challenging macro-economic backdrops but sound “bottom up” credentials


Large Cap GEM Bank Screener - Our Top Picks

Malaysia

RHB Bank BHD provides banking services. The Company offers commercial and consumer banking, corporate and investment banking, and international banking services. RHB also provides savings accounts, foreign currency accounts, home and travel insurance, and investment planning.

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RHB Bank Bhd (RHBBANK MK)

Malaysian Banks Screener; RHB Bank and Maybank Are Buys

RHB Bank remains a buy for its strong profitability, core capital and attractive valuations; we drop CIMB due to weak credit quality, while we...

Victor Galliano

Carsome: A Paradigm of Circular Economy and Unsung Hero in the Decarbonisation of Transportation

Carsome has reportedly filed for an IPO (dual Nasdaq/SGX listing), and has a great ESG story to tell investors including the role that used car...

Kyle Rudden

Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick

Maybank remains the quality buy, with its strong balance sheet; CIMB replaces RHB Bank as the new value pick given CIMB's improving credit quality...

Victor Galliano

Malaysian Banks Data to June 2023 Screener; Stick with RHB Bank and CIMB

Among Malaysian banks, we like RHB Bank for strong profitability, premium CET1 ratio, healthy credit quality and undervalued stock, CIMB Group for...

Victor Galliano

Large Cap GEM Bank Screener - Our Top Picks

In EM Asia, we like CCB, HDFC Bank, Mandiri & Hana; in LatAm, we turn positive on Banco do Brasil, go cautious on Bradesco & remain cautious on...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Malaysian Banks Screener; RHB Bank and Maybank Are Buys

RHB Bank remains a buy for its strong profitability, core capital and attractive valuations; we drop CIMB due to weak credit quality, while we...

Victor Galliano

Carsome: A Paradigm of Circular Economy and Unsung Hero in the Decarbonisation of Transportation

Carsome has reportedly filed for an IPO (dual Nasdaq/SGX listing), and has a great ESG story to tell investors including the role that used car...

Kyle Rudden

Malaysian Banks Screener; Value Pick CIMB Has Momentum, Maybank Is the Quality Pick

​Maybank remains the quality buy, with its strong balance sheet; CIMB replaces RHB Bank as the new value pick given CIMB's improving credit quality...

Victor Galliano

Malaysian Banks Data to June 2023 Screener; Stick with RHB Bank and CIMB

​Among Malaysian banks, we like RHB Bank for strong profitability, premium CET1 ratio, healthy credit quality and undervalued stock, CIMB Group for...

Victor Galliano

Large Cap GEM Bank Screener - Our Top Picks

In EM Asia, we like CCB, HDFC Bank, Mandiri & Hana; in LatAm, we turn positive on Banco do Brasil, go cautious on Bradesco & remain cautious on...

Victor Galliano

Maybank remains the quality buy, with its strong balance sheet; CIMB replaces RHB Bank as the new value pick given CIMB's improving credit quality...

Among Malaysian banks, we like RHB Bank for strong profitability, premium CET1 ratio, healthy credit quality and undervalued stock, CIMB Group for...