[ET Net News Agency, 28 December 2020] Guotai Junan International lowered its target
price for China Construction Bank (CCB) (00939) to HK$7.45 from HK$7.65 to reflect changes
in the market valuations and maintained its "accumulate" rating.
The research house said CCB recorded a net profit of RMB205,832mn for 1Q-3Q, down 8.7%.
Net interest income was RMB404,787mn, up 6.7%. NIM decreased by 14 bps to 2.13%. NPL ratio
was 1.53% as of the end of 3Q, up 0.11 ppts compared with the end of 2019.
Guotai Junan revised down its FY2020-22 EPS forecasts by 11%/9.4%/8.6%, respectively. It
forecast CCB's EPS to be RMB0.963/RMB1.027/RMB1.095. It thinks the current valuation is
still relatively low. (KL)