[ET Net News Agency, 8 November 2019] Goldman Sachs raised its target price for Postal
Savings Bank of China (PSBC)(01658) to HK$6.95 from HK$5.63 and upgraded its rating to
"buy" from "neutral".
The research house expects the tailwinds lifting profitability and prospects at PSBC to
continue, on two key factors. First, PSBC is improving the retail focus of its portfolio,
providing a strong growth opportunity. Second, it thinks low interbank rates have already
been reflected in asset yields at PSBC and priced in by the market.
Goldman added that its expectations for robust growth are underpinned by PSBC's plans to
further commercialize its 590mn clients and improve co-operation with shareholders such as
Ant Financial and Tencent (00700), both of which have been strategic investors in PSBC
since 2015.
Goldman raised its 2019-21 net profits forecasts by 6.7%/8.9%/14.4%, given (1) robust
loan growth, (2) higher organic non-interest income, and (3) stable asset quality
resulting in lower credit costs. (KL)
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01658 PSBC
Nominal 
3.860 -0.020 (-0.515%) Research Report
08/11/2019 17:46
{I-bank focus}Goldman upgrades PSBC (01658) to HK$6.95
| Remark: | Real time quote last updated: 16/04/2024 12:39 |
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