[ET Net News Agency, 29 April 2020] Daiwa Research lowered its target price for Bank of
Communications (BankComm)(03328) to HK$5.3 from HK$5.5 and maintained its "hold" rating.
The research house said BankComm's 1Q net profit growth of 1.8% was the lowest among SOE
peers. Annualised ROE (return on equity) for 1Q narrowed by 1.2pp to 11.8%. Daiwa expects
the bank's profitability to further weaken in 2020-21 due to high provisioning pressure.
Management stated that its debt collection capacity for credit card loans has already
returned to normal and it expects a largely stable NPL (non-performing loan) ratio QoQ for
2Q. Daiwa believes its provisioning pressure will remain high for 2020-21, which should
continue to weigh on its earnings growth. (KL)
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03328 BANKCOMM
Nominal 
5.340 +0.140 (+2.692%) Research Report
29/04/2020 14:08
{I-bank focus}Daiwa trims BankComm (03328) to HK$5.3; "hold"
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
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