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ACB [UNDERPERFORM -12.2%] - Asset quality outlook & fully-baked valuation drives U-PF - Update

We reiterate our UNDERPERFORM rating with a TP of 23,000 and total return of -12.2%. While we remain cautious on the asset quality at ACB, we take a lenient view on loan growth (from 18% to 20%) and non-interest income (from 43% to 52% CAGR for 2016-2019F) in the medium term. Even in light of these optimistic forecasts (13% bottom line upgrade for 2017F), we see valuations as unattractive (P/B of 1.8x compared to sector peers at 1.5x).