■ ACB’s FY16 net profit grew 29% yoy, 10% above our forecast, driven by robust operating income growth that offset rising operating expenses and provisions.
■ ACB wrote down over 61% of the troubled assets related to its scandal-tainted former vice-chairman Kien as of end-FY16, notably faster than we had expected.
■ We expect ACB’s FY17F earnings to grow ~35% yoy, driven by strong loan expansion, stable NIM, steady fees growth and provision write-backs.
■ We raise our target price by 2.9%, which is based on an unchanged 1.8x P/BV and higher FY17F BV. Maintain Add.