[ET Net News Agency, 1 March 2021] Goldman Sachs lifted its target price for Bank of
East Asia (BEA) (00023) to HK$17.5 from HK$17.2 and maintained its "neutral" rating.
The research house said BEA reported 2H 2020 EPS was 3% higher than Goldman's estimate;
the weaker-than-expected net interest income was offset by higher non-interest income. The
PPOP (pre-provision operating profit) was in-line.
Goldman revised its 2021/22/23 EPS forecasts by 2%/2%/0% to factor in the trends: lower
NIM in 2H 2020, strong growth in non-interest business. It noted that BEA remains one of
the few local banks that has not yet been acquired. Hence, M&A could lead to a valuation
multiple expansion. (KL)