Jinwu Financial News | According to the J.P. Morgan Chase Research Report, the profit growth of banks in Hong Kong has been impressive since this year, but it has not been able to push the stock price to outperform the market, mainly due to the market's focus on asset quality to offset the favorable factors of the unexpected increase in net interest spreads. The bank believes that the industry's profit growth momentum is slowing in 2024 because profit growth is expected to be moderate before provision, the capitalization of credit costs will take a long time, and shareholder feedback will be the focus of investors. Based on this, it favors regional banks over Hong Kong banks.
The bank lowered the target price of Hang Seng Bank (00011) from HK$130 to HK$102, with a rating of “increased holdings” to “neutral”; Bank of East Asia (00023)'s target price from HK$12.9 to HK$8.4%, and the rating from “neutral” to “reduced holdings”.
The target price for Bank of China Hong Kong (02388) was lowered from HK$35.2 to HK$28.7, Dah Sing Bank Group (02356) from HK$9.3 to HK$7.7, and Dah Sing Finance (00440) from HK$29.7 to HK$25.2, all maintaining the “increased holdings” rating.