[ET Net News Agency, 30 November 2020] Guotai Junan International lifted its target
price for BOC Hong Kong (02388) to HK$33.25 from HK$29.56 and maintained its "accumulate"
rating.
The research house said BOCHK's 9-month operating profit before impairment allowances
decreased by 3.9% to HK$31,322mn. Net interest income, net interest margin, net fee and
commission income were all lower, mainly due to impact from the COVID-19 pandemic and
economic downturn.
But Guotai Junan believes solid recovery of the mainland economy and the gradual
improvement of global demand should support the continued recovery of Hong Kong's economy.
It revised down BOCHK's net profit for FY2020-22 by 3.4%/4.5%/2.6%, respectively. (KL)