<Research>G Sachs: CN 6 Major State-owned Banks Deliver Solid 1Q Results; TPs Raised

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The six major state-owned banks in mainland China recorded better-than-expected pre-provision operating profit (PPOP) in 1Q26, while net profits were in line with expectations, Goldman Sachs released a research report saying. Although net interest income beat forecasts, management maintained guidance that full-year net interest margin will be under pressure.

The broker kept target valuation multiples for the A-shares of the six major state-owned banks unchanged, but raised the H-share valuation multiples of the four major banks, naming ICBC (01398.HK)  -0.080 (-1.176%)   Short selling $397.20M; Ratio 32.535%   , CCB (00939.HK)  -0.110 (-1.270%)   Short selling $502.63M; Ratio 28.795%   , ABC (01288.HK)  -0.040 (-0.684%)   Short selling $131.37M; Ratio 41.323%   and BANK OF CHINA (03988.HK)  -0.040 (-0.753%)   Short selling $356.43M; Ratio 27.244%   , by 0.375x.

Goldman Sachs also lifted the H-share valuation multiples of the two smaller banks, naming BANKCOMM (03328.HK)  -0.070 (-0.932%)   Short selling $56.94M; Ratio 16.673%   and PSBC (01658.HK)  -0.040 (-0.792%)   Short selling $38.07M; Ratio 15.035%   , by 0.125x to reflect the narrowing AH share premium.

As a result, Goldman Sachs' average 12-month target prices for the H-shares of the six major banks were elevated by 9%, while that for A-shares were added by 1% on average. All ratings were kept unchanged.

Changes in its target prices for H-shares of the six major state-owned banks are as follows:

**H-shares**
Stock | Rating | TP
ICBC (01398.HK)  -0.080 (-1.176%)   Short selling $397.20M; Ratio 32.535%   | Neutral | $6.22 → $6.96
BANK OF CHINA (03988.HK)  -0.040 (-0.753%)   Short selling $356.43M; Ratio 27.244%   | Buy | $5.35 → $5.95
CCB (00939.HK)  -0.110 (-1.270%)   Short selling $502.63M; Ratio 28.795%   | Buy | $9.04 → $9.96
ABC (01288.HK)  -0.040 (-0.684%)   Short selling $131.37M; Ratio 41.323%   | Neutral | $5.18 → $5.82
BANKCOMM (03328.HK)  -0.070 (-0.932%)   Short selling $56.94M; Ratio 16.673%   | Sell | $6.11 → $6.40
PSBC (01658.HK)  -0.040 (-0.792%)   Short selling $38.07M; Ratio 15.035%   | Buy | $5.46 → $5.75

**A-shares**
ICBC (601398.SH)  -0.060 (-0.817%)   | Neutral | RMB7.66 → RMB7.68
BANK OF CHINA (601988.SH)  -0.050 (-0.838%)   | Buy | RMB6.69 → RMB6.72
CCB (601939.SH)  -0.140 (-1.375%)   | Buy | RMB11.45 → RMB11.47
AGRICULTURAL BANK (601288.SH)  -0.090 (-1.395%)   | Neutral | RMB6.70 → RMB6.75
BANKCOMM (601328.SH)  -0.070 (-1.022%)   | Sell | RMB5.90 → RMB5.92
PSBC (601658.SH)  -0.030 (-0.599%)   | Buy | RMB5.96 → RMB6.09
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-02 16:25.) (A Shares quote is delayed for at least 15 mins.)

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