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<Research>HSBC Global Research Cites CM BANK: 2024 Loan Growth Target of 8-9% Faces Downside Risk
Recommend 12 Positive 5 Negative 12 |
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CM BANK (03968.HK)'s stock price caved under pressure this morning, once bottoming at $27.95 with a slump of 7.8% during the trading session. It last traded at $28.8, down 5%. HSBC Global Research released a report last Thursday (5th) noting that CM BANK participated in the investor conference and said that in the current low-risk preference environment, the primary focus is on asset quality and customer share of wallet rather than loan growth. CM BANK pointed out that although it had set a target of 8-9% loan growth for 2024 at the beginning of the year, corporate loan demand has been weak since the start of the year, and early repayments are still ongoing. CM BANK has tried to issue more unsecured loans, but overall, it still believes there is a downside risk to the target set at the beginning of the year. The broker reiterated a Buy rating on CM BANK with a TP of $48.6 as its operating rate in 1H24 was below expectations and fee income was affected by weak investment sentiment as well as the 2023 fee rate adjustments. Nevertheless, the broker remains upbeat about CM BANK's solid customer base and superior balance sheet compared to its peers. AAStocks Financial News |
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