China Merchants Bank 3968

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Confidence in credit card overdue trends

CMB’s monthly credit card ABS data indicate a better-than-expected overdue
loans trend in Jul, with overdue loan formation rates falling since May.

This gives us confidence that CMB may at its upcoming 1H22 results
announcement report that the worst is over for its credit card asset quality.

With CMB’s YTD share performance at the worst since its 2006 listing, we
expect new senior management to reaffirm its historically successful strategy.

Still our top sector pick. Reiterate Add, with an unchanged TP of HK$84.1.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3F803F5F55

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CM BANK 1H NP Hikes 13.5% to RMB69.42B, Topping Forecast

CM BANK (03968.HK) unveiled the interim results for the six months ended 30 June 2022.

The Group realised the net operating income of RMB179.08 billion, representing a year-on-year increase of 6.1%, in line with brokers' forecast as compiled by our reporters.

Dividend History
Announce Date Event Particular
2022/04/22 Quarter 1 No Dividend
2022/03/18 Final D:RMB 1.5220(equivalent to HKD 1.783454)
2021/10/22 Quarter 3 No Dividend
2021/08/13 Interim No Dividend

Net profit rose 13.5% yearly to RMB69.42 billion, beating brokers' forecast as compiled by our reporters. Basic EPS was RMB2.67.

Related News: Citi Not Rule Out CN 5-yr LPR Cut in Aug; Sees 0.5% 2023E CN Bank Profit Slide Per 5-bp Cut

Source: AAStocks Financial News

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Brokers│Views

JPMorgan│QoQ result mixed, earnings beat but core earnings, asset quality miss

DBS│focuses on bolstering value

UBS│2Q, half-yr earnings growth brisk, in line

Morgan Stanley│2Q earnings health shows ability to cope with cyclical stress

CLSA│nearing the end of the dark tunnel; key competitive edges unaffected

Credit Suisse│2Q earnings growth faster, beating

Citigroup│2Q PPOP stagnant, NPAT slightly beats

CICC│double-digit result growth shows biz stability

Goldman Sachs│result in line; asset quality worsens; NIM, fee income weak

CCB International│TP downgrade reflects higher uncertainty

Daiwa│2Q result shows near-term negative factor controllable

BofA Securities│rev. stress resulted from weak retail biz

HSBC Global Research│NIM contracts notably QoQ, deposit cost rise surprising

Related News: HSBC Global Research Cuts CM BANK (03968.HK) TP to $42.5, Rating Hold

Source: AAStocks Financial News

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China Merchants Bank Co (3968 HK)

1H22: Results In Line; Valuations Remain Attractive At Historically Low Levels

1H22 results came in within our expectations, with net profit improving 13.5% yoy.

Nevertheless, NIM continued to weaken due to the challenging macro environment,
while NPL ratio increased 0.04% hoh due to increasing bad debt from the property
sector.

While management expects 2H22’s NIM deterioration to narrow vs -14bp in
2Q22, we expect CMB to deliver better earnings in 2H22 and chart a double-digit growth in 2022.

Maintain BUY on CMB with a lowered target price of HK$52.87.

Source: UOBKH

https://research.uobkayhian.com/content ... da7f293d1d

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China Merchants Bank (3968 HK / 600036 CH): Competitive edge maintained [BUY, TP HK$63.70 / BUY, TP RMB51.80]

1H22 results in line with net profit rising 13.5% y-o-y to c.Rmb 69.4bn

1H22 revenue increased by 6% y-o-y with non-NII rising by 2.7% y-o-y

NPL ratio was 4bps y-o-y higher at 0.95% due to China property exposure while new NPL formation is slowing down

Reiterate BUY with TP revised down to HK$ 63.7

Source: DBS

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UBS Sees Negative Share Price Reaction on CMB on Ex-President's Dismissal

While the dismissal and investigation on CM BANK (03968.HK)'s former president Tian Huiyu will likely not pose direct threat to the bank's strengthening of retail banking business and its ROE, the market could become skeptical on whether CM BANK would be able to maintain its positioning as a commercially-run bank, UBS reported.

The share price of the stock, therefore, was anticipated to have a negative reaction to the news.

That said, UBS believed that the macroeconomic environment and property sector policies will remain key share price drivers and high-growth banks may outrun the broader market in a market rally.

CM BANK was rated at Buy, with a target price of $53.2.

Related News: Macquarie Concerned about Downward Re-pricing of SOE Banks' Assets; Top Pick BOC

Source: AAStocks Financial News

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CMB: Operations, Mgmt Normal at Present

Investors are keeping their eyes wide open on any change to the retail development of CM BANK (03968.HK).

21st Century Business Herald cited CMB that the bank has been adhering to "four stabilizers", i.e. stability in corporate governance, strategic direction, operation management and backbone employees and that it will maintain such stabilities looking ahead.

At present, all operations and management of the bank are normal.

Related News: UBS Sees Negative Share Price Reaction on CMB on Ex-President's Dismissal

Source: AAStocks Financial News

http://www.ig.com/sg/ig-indices/china-a50

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Citi: CM BANK's Recent Shr Price Corrections Offer Buying Opportunity

2022/10/14

The H-shares of CM BANK (03968.HK) have corrected 19.3% since 8 October, as the dismissal and investigation on its former president Tian Huiyu sparked investor concerns over potential changes to the bank's market-oriented business culture and wealth management strategy, reported Citigroup.

The broker contended that the bank's future business strategies are unlikely to alter due to regulatory authorities' criticism of the individual behavior of a former employee.

Citigroup remained confident that CM BANK would continue to deliver ahead-of-peers financial performance and viewed the recent share price corrections as a buying opportunity.

The stock was restated at Buy, with a target price of $53.7.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 219196/all

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Ex-CMB President Tian Huiyu Arrested by CN Supreme People's Procuratorate

China's Supreme People's Procuratorate had earlier made the decision to arrest Tian Huiyu, the former president of CM BANK (03968.HK), also the former CCP secretary of CMB, for alleged bribery, abuse of power and trading with undisclosed information, as CCTV learnt from the Procuratorate.

The case is under further legal proceeding.

AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

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China arrests Tian Huiyu, disgraced former CMB president, following Xi Jinping’s pledge of zero tolerance for corruption

Authorities completed an investigation of Tian over allegations including taking bribes and abusing power, state media reported on Wednesday

by Pearl Liu

Taking bribes, abusing power and trading on undisclosed information.

Source: SCMP

https://www.scmp.com/business/china-bus ... 5789ac073c