[ET Net News Agency, 9 February 2018] HSBC Global Research tweaked its target price for
Postal Savings Bank of China (PSBC)(01658) to HK$5.2 from HK$5.1, and maintained its "buy"
rating.
The research house cut its 2018 earnings forecast by 1% as the higher net interest
income and lower provisioning are offset by the lower fee income; but it raised its 2018
earnings forecast by 1% as the lower fee income is offset by the higher interest income
and lower provisioning.
HSBC said PSBC has a strong retail network and customer base, strong liquidity but weak
capital sufficiency. It is a relatively young full-service banking group after
restructuring in 2007 before which it was a postal savings service for China Post.
It thinks PSBC offers significant catch-up potential. PSBC uses its more than 40,000
outlets across China to reach 500m people, creating opportunities for up-selling. In terms
of loans, the bank's top 10 customers account for over 70% of total equity versus peers'
median of c20%, suggesting concentration risk. (KL)
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01658 PSBC
Nominal 
4.060 -0.020 (-0.490%) Others
09/02/2018 15:22
[I-bank focus]HSBC tweaks PSBC (01658) to HK$5.2
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