HL Finance

HL Finance: Macquarie maintains Outperform with TP $2.70. Says , a resumption of loan growth momentum YTD, lower YTD loan loss recoveries has resulted in higher than expected provisioning on P&L. Cuts earnings forecasts by 30% for 2012E, 26% for 2013E, and 15% for 2014E due to credit costs, which it forecasts to be slightly negative for 2012E and effectively zero for 2013E. But says a low market valuation of 0.7x P/B should still be attractive for long-term value investors.