[ET Net News Agency, 27 March 2020] Daiwa Research lifted its target price for Postal
Savings Bank of China (PSBC)(01658) to HK$5.8 from HK$5.7 and maintained its "outperform"
rating.
The research house said PSBC posted a slightly better 2019 results. Daiwa likes PSBC's
healthy balance sheet and remains positive on its growth potential for 2020. As per
management, its loans and deposits both saw decent growth for 1Q. Daiwa expects PSBC's
strong loan growth momentum to be sustained in 2020, fuelled by its recent capital
replenishments.
Daiwa lowered its 2020-21 PPOP (pre-provision operating profit) and earnings slightly to
reflect higher FinTech investments and lower NIM (net interest margin) forecasts. (KL)