AFFIN Bank (Stock Code 5185)

Listed on : Malaysia Stock Exchange
Sector : Banking
Share Price : RM3.25

The Board of Directors of AFFIN ("Board") wishes to announce that with effect from financial year 2012, the Company will be adopting a dividend policy to pay a minimum dividend based on 50% of the Company's profit after taxation for each financial year, provided the distribution would not be detrimental to the Company's cash requirement or any plans approved by the Board.
(This announcement is dated 25 May 2012.)

Belows are  the profit track records and dividend paid for Affin Bank:-

Affin Bank has been consistently pay out dividend once a year and normally announce on November of each calendar year. Therefore, if the projected result achieve EPS of approximately RM0.40, investors should expect a dividend of RM0.20 per shares of which provide dividend yield of 6.1%.

If based on dividend yield of 5%, fair value = RM3.96 (21% upside).

Therefore, investors can start to accumulate Affin Bank at current level and accumulate more if price weaken further.  

Comments:- Buy RM3.25

1. Enjoy dividend yield of 6% better than fixed deposit rate.

2. Potential capital return if share price move to RM3.70-RM3.96.

3. Strong shareholding e.g LTAT, government linked company.

4. Potential M & A target.

GOOD LUCK!