Daiwa lifted its target price for Postal Savings Bank of China (01658) to HK$5.9 from HK$5.8 and upgraded its rating to "buy" from "outperform".
The research house believes PSBC is in a relatively favourable position amid the current macro backdrop than other SOE banks and remain positive on its healthy balance sheet and strong earnings growth in 2020-21E.
It believes PSBC will continue to enjoy differential regulatory treatment in inclusive loans to micro and small enterprises (MSEs) vs. the other big-5 SOE banks, which requires MSE loan growth of >40% YoY in 2020, given PSBC's large MSE loan base (13% of loans at end-2019).
29/05/2020 16:51
{I-bank focus}Daiwa lifts PSBC (01658) to HK$5.9 & "buy"
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