Goldman Sachs lifted its target price for Bank of East Asia (BEA)(00023) to HK$26.5 from HK$25.6 and maintained its "neutral" rating.
The research house said BEA's 1H EPS of HK$0.22 was ahead of Goldman's estimate (HK$0.11 loss). Operating profit came in at HK$0.1bn versus Goldman's estimate of HK$0.3bn loss. The beat was largely driven by better top-line performance as BEA grew aggressively in China unsecured (internet enabled) personal lending space.
Goldman raised its EPS estimates by 67%/11%/2% for 2019/20/21 post the beat and adjusted for new management guidance. It raised revenue estimates (led by China), but also costs (similar driver - China internet lending) and provisions (same driver plus caution on credit risk).
22/08/2019 17:40
{I-bank focus}Goldman lifts Bank of East Asia to HK$26.5
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