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<Research>UBS Raises CCB (00939.HK) TP to $7.4; EPS Stable, Div. Yield Above Peers
Recommend 20 Positive 30 Negative 6 |
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UBS maintained a Buy rating on CCB (00939.HK), raising its target price from $6.5 to $7.4 on the basis of stable EPS and higher-than-peer dividend yield, while CCB's dividend yield of 6.8% was still attractive among the Big 4 peers. According to UBS, CCB expected its new loan volume this year to be roughly the same as last, focusing primarily on green finance, high-tech and infrastructure sectors. As for loan pricing, CCB believed it will become sturdy if there are no further interest rate cuts in the future. However, in the low-yield macro environment, UBS still foresaw NIM to narrow, but at smaller magnitude of -10 bps YoY in 2025, while credit costs will remain relatively low at 48-49 bps from 2024 to 2025 to support its earnings growth. UBS slightly trimmed its 2024-25 EPS forecast by about 1%, and cut its revenue forecast by 1%-3%, but most of this will be offset by the lower credit cost forecast. AAStocks Financial News |
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