[ET Net News Agency, 16 April 2018] HSBC Global Research cut its target price for
Huishang Bank (03698) to HK$4.35 from HK$4.8, and reiterated its "hold" rating.
The research house said Huishang's 2017 EPS rose 5.6%; BVPS was up 12.7% versus 2016, to
RMB4.68, which was 1.5% above HSBC's estimate.
HSBC sees four negatives (fee & other income, asset quality, balance sheet, and Capital
ratios & dividends), two positives (cost efficiency), and one neutral (net interest
income) trend.
HSBC sees 2017 results as moderately negative given faster-than-expected growth and
weaker-than-expected capital ratios. It cut its 2018 and 2019 earnings forecasts by 3-4%
on a more conservative COE assumption (11.5% versus 11.0% earlier). (KL)