[ET Net News Agency, 12 October 2020] Jefferies Research initiated coverage on Hang
Seng Bank (HSB)(00011) with a "hold" rating and a target price of HK$120.8.
The research house said HSB achieved a better than peers ROE thanks to better
profitability in both its interest-earning and fee-earning business, supported by its
strong retail franchise.
However, the advantage could be diminishing in the current asset quality down cycle
given its higher asset quality pressure (higher credit costs), and shrinking risk appetite
(lower top-line profitability).
HSB is currently trading at a historical low rolling P/B of 1.3x, but still higher than
peers. Jefferies doesn't see much upside either, considering 10% 2020 ROE. In addition,
the dividend yield of 3.1% is less attractive than peers. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00011 HANG SENG BANK
Nominal 
95.900 +0.350 (+0.366%) Research Report
12/10/2020 15:31
{I-bank focus}JEF starts Hang Seng Bank (00011) at HK$120.8
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |