[ET Net News Agency, 12 October 2020] Jefferies Research initiated coverage on BOC Hong
Kong (BOCHK)(02388) with a "buy" rating and a target price of HK$28.95.
The research house believes BOCHK will outperform its peers in this "double down cycle",
supported by its faster loan expansion (better revenue growth), benign asset quality
(lower credit cost pressure) and better provision and capital position (better able to
withstand asset quality headwinds).
Trading at a historically low valuation of 0.77x rolling P/B (42% discount to HSB at
1.32x), Jefferies thinks the valuation is attractive considering a >9% ROE and 3.8%
dividend yield after payout cut. (KL)