Beyond AI, AmInvest Flags Banks and Telcos for a Potential 2027 Comeback
StockTipRatings ·
AmInvestment Bank analyst Paul Yap Ee Xing believes Malaysian banks and telecommunications stocks could regain investor attention in 2027, as attractive valuations and potential consolidation create opportunities beyond the AI investment theme. In his November 5 strategy report, he argues that investors may be overlooking dividend-paying stocks while concentrating on technology, industrial infrastructure and solar-related companies.
Paul Yap Ee Xing ranks No.3 among 11 AmInvestment Bank analysts and No.5 among 21 technology-sector analysts tracked on StockTipRatings, based on data since 2023. He holds a 63% expert rating, with a 10% average return and a 66% success rate over the one-year period following his calls.
Banks’ Valuations Become Harder to Ignore
Paul notes that concerns over higher bond yields, treasury-related earnings, capital and near-term dividends have weighed on banking stocks. Banks have also become a convenient source of cash as investors fund other positions. However, sector valuations approaching 0.8 times book value, alongside dividend yields of approximately 6%, make the stocks increasingly attractive for accumulation, in his view.
Potential Mergers Could Revive Telco Interest
Mobile operators’ valuations have compressed from a historical enterprise-value-to-EBITDA multiple of approximately 12 times to 7–8 times. Paul believes consolidation could improve competitive discipline and unlock operating synergies, potentially supporting a sector re-rating. Nevertheless, the attractiveness of any transaction will depend on its pricing.
Still Positive on AI, but Liquidity Remains Tight
Paul continues to favour accumulating technology stocks during weakness, arguing that hyperscalers’ strong balance sheets should support elevated AI investment in the near term.
However, he expects market liquidity to remain constrained into November. Cash represented 7.2% of assets under management in September in the funds tracked by the report, while upcoming pharmacy and REIT listings could absorb approximately RM4 billion from the market.
Top Picks
His banking picks are CIMB Group Holdings, Hong Leong Bank and Hong Leong Financial Group, all rated “Buy”, with target prices of RM9.80, RM28.00 and RM33.00, respectively.
Other preferred stocks are Greatech Technology, V.S. Industry, Keyfield International, Jati Tinggi Group and Karex, all rated “Buy”, with respective target prices of RM3.60, RM0.60, RM1.76, RM2.00 and RM0.60.
Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.