China Merchants Bank 3968

[winston]

<Hindsight>Brokers' Latest TPs, Views on CM BANK (03968.HK) Post-Results

CM BANK (03968.HK) has announced its 2024 results.

Listed below are the latest investment ratings and target prices for CM BANK from seven brokers as summarized by our reporters:

Broker│Investment Rating│Target Price
Morgan Stanley│Overweight│$58.2
HSBC Global Research│Buy│$56.2
JPMorgan│Overweight│$56
Goldman Sachs│Buy│$47.36
UBS│Buy│$45.5
BofA Securities│Neutral -> Underperform│$38.65 -> $43.35
Citi│Buy│$41.06


Broker│Opinion

Morgan Stanley│Quarterly revenue and earnings growth rebounded

HSBC Global Research│2024 results in line

JPMorgan│Quarterly fee income growth missed, but debt management improved NIM

Goldman Sachs│Quarterly results in line with an unchanged full-year dividend; this year's interim dividend may raise questions about shareholder returns again

UBS│All indicators in quarterly results positive

BofA Securities│Despite in-line quarterly results, rating downgraded to Underperform due to valuation

Citi│Last quarter's results in line with a slight increase in the dividend payout ratio

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>CLSA: CM BANK (03968.HK) Posts Good FY2024 Results Quality; TP Hiked to $48.9

CLSA published a research report, covering CM BANK (03968.HK), which marked good quality in FY2024 results and maintained a leading position in the industry.

As a result, CLSA raised its H-share target price from HKD43.8 to HKD48.9, maintaining an Outperform rating.

Also, CLSA adjusted its revenue forecasts for CMB, increasing FY2025 by 0.2% and FY2026 by 1.1%, while tweaking its net profit forecasts, raising FY2025 by 0.2% and lowering FY2026 by 1.1%.

Given the gradual improvement in China’s economic momentum, CLSA believed the worst may be over.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

China Merchants Bank (3968 HK)

1Q25: Earnings Down 2.1% yoy On Weaker Trading Gains

CMB’s 1Q25 net profit dropped 2.1% yoy growth due to a 24% yoy fall in other NII amid rising bond yields and fee weakness.

On a positive note, NIM was resilient with a mild 3bp qoq decline due to better funding cost management and a strong recovery in its wealth management business in 1Q25.

However, the weaker-than-guided loan growth and the continued deterioration in retail loan quality are concerning, especially in light of the recent changes in the US tariff policy.

Maintain BUY. Target price: HK$49.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

China Merchants Bank (3968 HK)

2Q25: In-Line Earnings

But PPOP Misses Expectations On Muted Fee Income And Larger NIM Compression;

Downgrade to HOLD CMB’s 2Q25 earnings are within our expectations due to lower credit cost but PPOP was a miss due to muted fee income and larger NIM compression.

Asset quality remained largely stable with a modest NPL improvement, but retail risks stay elevated.

Meanwhile, management struck a cautious tone on both NIM and retail asset quality.

In view of CMB’s limited fundamental catalysts and a less attractive dividend yield, we downgrade CMB to HOLD. Target price: HK$51.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email