[ET Net News Agency, 6 April 2020] Jefferies Research initiated coverage on China
Minsheng Banking (01988) with a "hold" rating and a target price of HK$5.67.
The research house said Minsheng should still see better net interest income growth in
1Q, thanks to interbank rate declines, but is likely to see worse-than-peers NIM (net
interest margin) contraction given its greater exposure to rate-sensitive industries.
While Minsheng may not notch up the worst surge in NPLs (non-performing loan) in this
cycle, given efforts in cutting risky MSE (micro-and-small-enterprise) loans, its
provisioning is way too low, Jefferies noted.
Minsheng is likely to be most affected in an economic downturn rate-cut cycle, given its
more volatile NIM and low provisioning. However, it may outperform in a short-term market
rally, given its relatively high beta. (KL)
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01988 MINSHENG BANK
Nominal 
2.810 0.000 (0.000%) Research Report
06/04/2020 17:44
{I-bank focus}JEF starts Minsheng Bank (01988) at HK$5.67
| Remark: | Real time quote last updated: 25/04/2024 09:53 |
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