China Construction Bank 0939

[winston]

not vested

Summary of latest Ratings/Targets for CCB (00939.HK)

CCB (00939.HK) +0.090 (+1.627%) Short selling $8.65M; Ratio 1.507% reported the first-half net profit of RMB13.0662 billion, up 9.1% yearly, which was in line with the expected median value of RMB13.084 billion.

Summary of latest Ratings/Targets for CCB (00939.HK) +0.090 (+1.627%) Short selling $8.65M; Ratio 1.507% were as follows:

Broker / Investment Rating / Target Price (HK$)
HSBC / Overweight / 10
Citigroup / Buy / 7.8
Deutsche / Buy / 7.45
C Suisse / Outperform / 7.4
Jefferies / Buy / 7.1
BofA Merrill Lynch / Buy / 7
G Sachs / Buy / 6.7
BNP Paribas / Buy / 6.7
Barclays / Equalweight / 6.5
BOCOM Intl / Long-term Buy / 6.48
Macquarie / Outperform / 6.41
UBS / Buy / 6.4
Mizuho / Buy / 6.5->6

Source: AAStocks Financial News

[winston]

not vested

Loan provisions hit CCB growth

China Construction Bank (0939), the mainland's second-largest lender, reported its slowest quarterly profit growth in more than five years as bad loans climbed and the economy weakened.

Net income rose 5 percent to 59.64 billion yuan (HK$75.58 billion) in the three months through September from 56.77 billion yuan a year earlier, the lender said in an exchange filing.

The bank's net interest income rose 13 percent from a year earlier to 111.95 billion yuan, while net fee and commission income from operations such as investment banking, credit cards and mutual funds fell 4 percent to 23.62 billion yuan.

Chinese banks waived fees for a range of services for smaller firms starting August 1 in response to government calls to help lower their funding costs.

The bank set aside 16.3 billion yuan of provisions in the quarter against potential soured debt, 70 percent more than a year earlier.

CCB, the mainland's largest mortgage lender, faces an economy that is being undermined by declining housing sales and weaker demand for credit. The earnings report, the first for the quarter from one of China's big-five banks, underscores pressures weighing on lenders' share prices.

Residential property matters more to Construction Bank than any of the other big-five lenders, with mortgages accounting for almost a quarter of its total loans by June and lending to developers representing another 6 percent.

The bank's nonperforming loans increased 10 percent to 105.3 billion yuan as of September 30 from the previous quarter. Excluding the effects of the acquisition of of Brazil's Banco Industrial & Comercial SA, bad loans would have been 99.9 billion yuan, it said.

Shares of Construction Bank closed up 0.36 percent to HK$5.63 yesterday.

Source: The Standard HK

[winston]

not vested

CCB (00939.HK) annual net profit up 6% yoy; div 30.1 fen

CCB (00939.HK) -0.070 (-1.097%) Short selling $47.46M; Ratio 3.381% announced that for 2014, the net profit rose 6.1% yearly to RMB227.83 billion, representing EPS of 91 fen.

A dividend of 30.1 fen was declared, as compared to 30 fen in the year-ago period.

During the year, the net interest income rose 12.3% to RMB437.4 billion; the net interest spread rose 5 bps to 2.61%; the fee and commission income rose 4.1% to RMB108.5 billion.

As of the end of 2014, the non-performing loans rose RMB27.91 billion as compared to the beginning of the year to RMB113.17 billion; NPL ratio rose 0.2 ppt to 1.19%.

Common equity tier 1 ratio equaled 12.12%; tier 1 ratio equaled 12.12%; total capital ratio equaled 14.87%, up 1.37 ppt, up 1.37 ppt and up 1.53 ppt, respectively.

Source: AAStocks Financial News

[winston]

vested

QFII Fund Ditches RMB3.5B ICBC, CCB A Shares

According to the information from the block trade platform on the Shanghai Stock Exchange, China International Capital Corporation Limited (CICC) Beijing Jianguomen Outer Street Division sold 280 million shares of China Construction Bank (601939.SH) involving RMB1.91 billion;

On the same day, it also sold 300 million shares of Industrial and Coml Bank of China (601398.SH) involving approximately RMB1.63 billion.

China International Capital Corporation Limited (CICC) Beijing Jianguomen Outer Street Division is a well-known QFII base camp.

Source: AAStocks Financial News

[winston]

not vested

CCB (939 HK)

The Chinese banking sector’s net profit growth rate continued to decelerate in 1H2015, dragged by
1. lower credit demand,
2. narrowing NIMs and
3. rising NPLs.

Also, the NPLs concerns kept investors away from the sector.

We assessed Chinese banks’ asset quality and our study suggests that CCB (939 HK) stands out among large banks.

We prefer large banks (CCB and ICBC), given their trough valuations and better-than-peer asset quality.

Source: UOBKH

[winston]

<Post-Result>Brokers' Latest Ratings & TPs for CCB (Table)

CCB (00939.HK) reported net profit of RMB228.145 billion for the year ended 31 December 2015, representing a year on year rise of 0.14%, in line with market consensus.

EPS equaled 91 fen.

Final dividend was 27.4 fen.

11 brokers' ratings and target prices to the bank are consolidated as follows:

Broker/Rating/Target price (HK$)
Citigroup/ Buy/ 8
Morgan Stanley/ Overweight/ 7.6
JP Morgan/ Overweight/ 7.5
Nomura/ Buy/ 7.07
UBS/ Buy/ 6.5
CICC/ Neutral/ 5.6->6
Goldman Sachs/ Buy/ 5.94
BNP Paribas/ Buy/ 5.9
UOB KayHian/ Buy/ 5.85
HSBC/ Buy/ 6->5.8
Macquarie/ Outperform/ 5.61

Source: AAStocks Financial News

[winston]

not vested

China Construction Bank (0939) chairman Wang Hongzhang said the bank's new bad-loans growth "has touched the bottom."

The lender expected mainland banks to convert debt to equity in the short term and said he believes it will benefit them.

"The policy will target impaired loans of companies that have low leverage ratios and no severe operating difficulties," said executive vice president Pang Xiusheng.

"It will have some effect on reducing the bad- loans ratio, though it is not the main purpose of the policy."

Wang also said the bank has the the bottom both in profit growth and a 30 percent dividend payout ratio. CCB saw a 0.14-percent increase in net profit to 228.15 billion yuan, the slowest among its domestic rivals, dragged down by a 51-percent surge in bad loans.

A final dividend of 27.4 fen was announced, down 9 percent.

Source: The Standard

[winston]

Temasek dumps CCb shares

by Gloria Song

China Construction Bank (0939) said yesterday that Temasek, the sovereign fund of Singapore, offloaded 555 million H shares, representing 0.22 percent of the total shares, at HK$5.01 per share last Friday.

This transaction will be settled through Fullerton Financial Holdings, a wholly owned subsidiary of Temasek.

Temasek had disposed shares of CCB several times before, most recently in January 2015.

Wang Zuji, the president of the bank, said in a press conference last Friday that non-performing loans in 2016 would not exceed that of last year and the bank would issue 7.5 billion securities derived from 30 billion yuan of non-performing loans in September.

CCB shares ended at HK$5.16 yesterday, up 2.18 percent.

Source: The Standard

[winston]

not vested

China Construction Bank 中国建设银行 (939 HK)

China Banks benefit from the on-going stabilisation in asset quality and net interest margin (NIM). However, the PBOC focuses on controlling and preventing financial risks and has tightened liquidity.

Large SOE banks are less affected due to their strong deposit franchise, diversified businesses and lean cost structure.

We like China Construction Bank as it achieved a healthy net profit growth of 3% yoy in 1Q17.
NIM edged up 9bp qoq to 2.13% and should stabilise in the coming quarters.

Management was conservative to set aside large provisions of Rmb35.3b to improve loan loss coverage to 159.5%.

We suggest a BUY recommendation with a target price of HK$7.28.

Source: UOBKH

http://en.ccb.com/en/home/indexv3.html

[winston]

not vested

June 1, 2017

<Research Report>DBS Vickers Reiterates CCB as Top Pick for CN Banks on Tightened Mortgage Rates in PRC

DBS Vickers released a research report, commenting that CCB (00939.HK) had a strong balance sheet, benefited from rising corporate credit demand.

In addition, CCB's mortgage business in mainland China was resilient, becoming a beneficiary amid mainland's tightened mortgage recently.

The research house reiterated CCB at Buy with target price of $8.3 and considered the bank as a top pick among Chinese stated-owned banks.

The report pointed out that the market underestimated the profit upside of CCB as corporate loans increased by 14.8% year on year in the first four months of this year.

Besides, mortgage rate was tight in mainland but CCB was expected to be most favored riding on its higher mortgage leverage.

Source: AAStocks Financial News