[ET Net News Agency, 31 August 2017] HSBC Global Research maintained its target price
for China Cinda AMC (01359) at HK$3.4 unchanged, but downgraded its rating to "hold" from
"buy" on concern about further asset quality deterioration.
The research house said it dislikes: (1) RDA (restructured distressed assets) balance
grew by 7% h-h while impaired RDA rose by 28%; (2) NPL ratio of its loan portfolio was
2.05%, up 48bp h-h.
But HSBC noted positives include: (1) Nanyang Commercial Bank (NCB) had largely stable
performance in 1H, with ROE rising to 7.8%, up from 6.7% in 1H 2016 despite flat ROA of
0.82%; (2) Income from TDA (traditional distressed assets) increased by 86% y-y to
RMB4.2bn.
HSBC cut its 2017-19 earnings estimates by 6% on average mainly reflecting lower growth
of the distressed asset management business and higher impairment charges. (KL)
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01359 CHINA CINDA
Nominal 
0.650 +0.020 (+3.175%) Others
31/08/2017 17:47
[I-bank focus]HSBC downgrades China Cinda (01359) to "hold"
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