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<Research>G Sachs Recommends CM BANK, Trims Pre-Provision Profit Forecast for CN Banks by 0.3%
Recommend 10 Positive 24 Negative 15 |
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Goldman Sachs has released a report on Chinese banks, adjusting its forecasts for those under its coverage. On average, the broker's forecasts for the 2025-27 NIM increased by 1 bp, for fee income rose by 1%, and for the loan growth dropped by 0.2 ppts. The basic forecast for credit costs remained unchanged. These adjustments led to a 0.3% decline in the pre-provision profit forecast and a 0.5% increase in the post-tax net profit forecast. Maintaining the target valuation multiples for the covered stocks, Goldman Sachs reduced the target prices by 0.3% on average, implying a 2% upside potential for Chinese bank stocks listed in HK. Regarding stock selection, Goldman Sachs recommended CM BANK (03968.HK) for its significant benefit from the recovery of consumer finance, better asset quality, adequate capital and provisions, expected faster earnings growth compared to large banks, and room for dividend enhancement. Among large banks, the broker preferred CCB (00939.HK) and BANK OF CHINA (03988.HK), which had already completed capital replenishment. Stocks | Investment Ratings | Target Prices ICBC (01398.HK) | Neutral | HKD5.8 → HKD5.79 BANK OF CHINA (03988.HK) | Buy | HKD4.94 → HKD4.95 CCB (00939.HK) | Buy | HKD8.33 → HKD8.27 ABC (01288.HK) | Neutral | HKD4.95 → HKD4.91 BANKCOMM (03328.HK) | Sell | HKD5.8 → HKD5.79 PSBC (01658.HK) | Buy | HKD6.04 → HKD6.03 CM BANK (03968.HK) | Buy | HKD53.41 → HKD53.44 AAStocks Financial News |
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