[ET Net News Agency, 5 March 2021] Citi Research lifted its target price for Bank of
China (Hong Kong) (BOCHK)(02388) to HK$32.5 from HK$24.9 and upgraded its rating to "buy"
from "neutral".
BOCHK reports on 30th March. The research house said its earnings are likely to be much
more resilient than peers'. BOCHK's share price has lagged Hang Seng Bank's (00011). Beat
on conservative DPS estimate or a more constructive outlook could be a catalyst for the
stock to re-rate.
Citi expects a further modest NIM decline in 4Q 2020 to 1.16%. BOCHK recorded strong
treasury gains due to a falling yield in FY2020, which is difficult to repeat into FY2021,
a headwind for revenue growth. (KL)