[ET Net News Agency, 19 April 2018] Credit Suisse assumed coverage on China Everbright
Bank (CEB)(06818) with "neutral" (from "underperform") and adjusted its target price to
HK$3.7 (from HK$4).
The research house revised down its FY2018-19 by8-9%. Excluding the potential share
dilution effect, it estimated CEB's EPS growth to remain weak at 2% on slower loan growth
with flattish NIM.
CEB reported LDR of nearly 90% in 2017, which will further constrain its loan growth. As
a bank with large exposure to shadow banking loans, CEB's capital and liquidity is
expected to be further constrained on more active balance sheet management, Credit Suisse
noted. (KL)