Re: China Construction Bank 0939
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Not vested. From Phillips:-
Risks
The growth of profits is affected by sustainable decrease of NIM.
Share price increased significantly recently, and recorded the highest price in last 12 months, which increased by around 50% from the beginning of 2009, and will face pressures of decrease of price more and more in the short term.
Valuation
In all, the performance of CCB is better than our expectation, which owns stable development of its business, quite strong ability of risk control and good quality of loans.
We estimate the 12-month target price of CCB is HK$7.73, around 13% higher than its latest closing price, equivalent to P/E 15X, P/B 3X 2009 and P/B 2.6x 2010 for CCB, we give it Hold rating.
Risks
The growth of profits is affected by sustainable decrease of NIM.
Share price increased significantly recently, and recorded the highest price in last 12 months, which increased by around 50% from the beginning of 2009, and will face pressures of decrease of price more and more in the short term.
Valuation
In all, the performance of CCB is better than our expectation, which owns stable development of its business, quite strong ability of risk control and good quality of loans.
We estimate the 12-month target price of CCB is HK$7.73, around 13% higher than its latest closing price, equivalent to P/E 15X, P/B 3X 2009 and P/B 2.6x 2010 for CCB, we give it Hold rating.