Analyst Manyi Lu of DBS maintained a Buy rating on Bank of Communications Co (BKFCF – Research Report), with a price target of HK$8.00.
Manyi Lu has given his Buy rating due to a combination of factors including the Bank of Communications Co’s strong personal loan growth and supportive consumption policies. The bank’s personal loan segment has shown significant expansion, with a year-over-year increase of 11.3%, which has outpaced corporate loan growth. This strategic focus on personal loans is expected to continue driving the bank’s performance, supported by favorable economic policies in China.
Additionally, the bank’s financial results have exceeded expectations, with a slight increase in profit and a better-than-anticipated net interest margin. The revised earnings forecasts for the coming years reflect this positive outlook, with expectations of continued earnings growth. The reduction in the cost of equity assumption and the bank’s attractive dividend yield further support the Buy rating, as these factors contribute to a more favorable valuation and potential upside for investors.
According to TipRanks, Lu is a 5-star analyst with an average return of 31.0% and an 85.42% success rate.