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<Research>CICC: Sector Outlook Rather Positive Even Though CN Banks' 3Q Results Are Relatively Muted
Recommend 47 Positive 89 Negative 39 |
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CICC released a research report expecting 3Q24 revenue/ net profit of listed Chinese banks to rise -2%/ +1% YoY, basically the same as that in 2Q24, with interest margin remaining the main reason dragging down revenue, in line with market consensus. Compared with 3Q24 results, the current market's focus is more on the implementation and impact of the recent financial and monetary stimulus policies. The broker believed that the policy-catalyzed improvement in banks' asset quality and increased dividend certainty are the key variables affecting banks' share prices. Therefore, CICC's outlook on the sector is rather positive even though the results are relatively muted. CICC was optimistic about the valuation rerating of the banking sector under the policy catalysis, mainly due to the expected improvement in asset quality under the debt-equity swap policy and the special investment value brought by the stable dividend return. Among individual stocks, the broker focused on stocks with more obvious industrial competitiveness, naming CM BANK (03968.HK), BANK OF NINGBO(002142.SZ), CHANGSHU BANK(601128.SH), and state-owned banks. The broker was also concerned about YU RURAL COMMERCIAL BANK(601077.SH) and the reform and transformation progress of BANK OF NANJING(601009.SH). AAStocks Financial News |
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