[ET Net News Agency, 9 January 2018] Daiwa Research initiated coverage on Postal
Savings Bank of China (PSBC)(01658) with an "outperform" rating and a target price of
HK$5.1.
PSBC ranked seventh among China banks in terms of total loans and fifth in terms of
total deposits. The research house believes that tighter domestic liquidity
may lead the market to revalue PSBC's better-than-peers lending capacity.
Daiwa expects PSBC's LDR to increase 3pp each year from 44.2% at end-3Q 2017 to 47.4% in
2018 and 50.8% in 2019, and the loan proportion of total assets to rise by 2pp each year
from 39.9% at end-3Q 2017 to 42.1% in 2018 and 44.2% in 2019, mainly by optimising its
asset structure and retail loan growth.
It also sees a gradual lifting of loan exposure which will contribute to NIM widening.
Daiwa expects NIM to improve by 6-8bps each year in 2018-19, higher than its peers. (KL)
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01658 PSBC
Nominal 
4.050 +0.010 (+0.248%) Others
09/01/2018 09:50
[I-bank focus]Daiwa starts PSBC (01658) at HK$5.1
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