DBS expects CCB's profit to grow at an average compound annual rate of about 2.7% from 2023 to 2026.
The Zhitong Finance App learned that DBS released a research report stating that it reaffirmed CCB's (00939) “buy” rating and lowered its profit forecast for the current year and next two years by 5% to 6% to reflect lower net interest spread expectations under a relaxed monetary policy environment. The target price was raised from HK$6.2 to $6.4. Currently, the stock price is at a low level among the state-owned enterprise peers, but it predicts that this year's dividend rate of about 9% is the highest among the four major state-owned enterprise banks.
According to the report, the company's net profit for the first quarter fell 2.2% year on year to 87 billion yuan, in line with market expectations. Management emphasized that in the current complex environment, CCB is more concerned with the quality of growth rather than simply seeking to expand the size of its balance sheet. The bank expects CCB's profit to grow at an average compound annual rate of about 2.7% from 2023 to 2026, while this year's profit may fall year on year.