[ET Net News Agency, 11 November 2019] HSBC Global Research lowered its target price
for Bank of East Asia (BEA)(00023) to HK$18.6 from HK$29.3 and maintained its "hold"
rating.
The research house said BEA shares are down 23.1% year-to-day. The trailing P/B multiple
has fallen to 0.57x 1H. Despite the low valuation compared to BEA's own history, HSBC sees
more attractive valuations elsewhere in a Greater China context. It said that Dah Sing
Banking Group (02356) and China Everbright Bank (06818) trade at 0.54x PB and 0.55x
respectively, both offering a higher expected ROE than BEA.
HSBC noted that BEA China's outlets were down 23% from the peak with staff numbers down
39% to 3,800 by 1H; yet, mainland China segment profitability has been consistently below
the group average. HSBC lowered its 2019/20 earnings forecasts by 54.9%/22.4% to reflect
reduced NIM, lower fee income, and conservative asset quality estimates. (KL)
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00023 BANK OF E ASIA
Nominal 
9.280 +0.100 (+1.089%) Others
11/11/2019 14:55
{I-bank focus}HSBC cuts Bank of East Asia (00023) to HK$18.6
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
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