[ET Net News Agency, 31 March 2021] HSBC Global Research lifted its target price for
Agricultural Bank of China (ABC) (01288) to HK$4.1 from HK$3.8 and maintained its "buy"
rating.
The research house said it sees two positives (cost efficiency and capital ratios), two
negatives (asset quality and balance sheet), and one neutral/mixed trend (revenue), out of
the five key aspects it monitored.
HSBC thinks ABC delivered ahead of peers' PPOP growth and saw better-than-peer NIM
trends. NPL ratio increased more than peers, but this may reflect improved recognition to
include 20d overdue corporate loans as NPLs.
Post-results, HSBC raised its 2021/22 earnings forecasts by +6.4%/+4.5%, respectively to
reflect its higher net interest income and improved cost efficiency forecast. (KL)