[ET Net News Agency, 8 June 2018] Goldman Sachs trimmed its target price for Chongqing
Rural Commercial Bank (CQRC)(03618) to HK$6.8 from HK$7.1, and retained its "neutral"
rating.
The research house lowered its 2018-20 EPS estimates by 1%/2%/1% for CQRC, factoring in
marginally loosening interbank liquidity and its effect on NIM.
The new target price implies 0.79x 2018 P/B versus 0.63x 2018 trading P/B. Key risks
include tighter-/looser-than-expected interbank liquidity, better-/worse-than-expected net
interest margin and asset quality, surprise slowdown of Chongqing economy. (KL)