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<Research>UBS Prefers CCB/ ICBC/ CITIC BANK/ CM BANK/ CQRC BANK; CN Banks May Still Outpace Mkt Despite Ongoing Uncertainty
Recommend 92 Positive 136 Negative 78 |
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As of February 10, 16 listed Chinese banks have announced their preliminary 2024 results, which generally saw an immense improvement in both 4Q24 revenue and net profit after tax, according to a report from UBS. As indicated by the report, the 4Q24 average revenue and net profit growth for the four joint stock banks were 2.2% and 11.8%, and for 12 regional banks were 14% and 13.3%, all accelerating compared to 1-3Q. Among them, CM BANK (03968.HK) and CITIC BANK (00998.HK) logged the most significant earnings improvement. UBS also noted that while the market's spotlight was on AI and Deepseek in the past two weeks, Chinese banks underperformed due to capital rotation. However, the ongoing uncertainty brought by the US trade policies and the lack of improvement in fundamentals may lead high-yield stocks like Chinese banks to stand out. The broker was upbeat about CCB (00939.HK), ICBC (01398.HK), and CITIC BANK as it expected them to offer attractive dividend yields, reasonable valuations, and sturdy financial performance. It was also optimistic about CM BANK, which is likely to have greater upside potential in a bull market. Among regional banks, it preferred CQRC BANK (03618.HK). The latest target prices and investment ratings are available in a separate table. AAStocks Financial News |
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