Jinwu Financial News | According to the Morgan Stanley Research Report, it is expected that the core business of China Cinda (01359) will continue to be under pressure, and the return on assets is expected to drop 1.3 percentage points to 3.4% compared to half a year. Furthermore, the bank believes that there is limited room for provision release to cushion the decline in revenue. The non-performing loan coverage rate fell 13% to 118% month-on-month, a record low.
The bank lowered its investment return forecast for 2023/24 by 26% and 36%. The bank believes that the sale of non-performing loans will further reduce return on assets. Furthermore, the 2023/24 profit forecast will decrease by 29.1% and 44.6%, and non-performing assets are expected to decrease by 8.9% and 6.1% in 2023/24.
The bank lowered its target price by 33% from HK$1.06 to HK$0.71, giving it a “in sync with the market” rating.