China Construction Bank (H)

  • Ticker0939
  • ISINCNE1000002H1
  • ExchangeHong Kong Stock Exchange
  • SectorBanks
  • CountryChina

Analysts

UOB
Carol Dou Xiao Qin ...
  • Charles Wong Kok Min
  • Eric Wang Zhen
  • Jayson Kong
  • Joyce Chan Pui Lai
  • K Ajith
  • Michael Cheung Ho Bun
  • Neo Chen Wentao
  • Sandra Huang Jieqiong

Greater China Daily: Thursday, October 31, 2019

KEY HIGHLIGHTS Results Angang Steel (347 HK/HOLD/HK$2.68/Target: HK$2.53) 3Q19: Net profit slumped 88% yoy on margin squeeze; headwinds persist. Bank of Ningbo (002142 CH/HOLD/Rmb26.82/Target: Rmb24.80) 3Q19: Results beat market expectations, capital raised for future growth. China Construction Bank (939 HK/BUY/HK$6.23/Target: HK$7.23) 3Q19: Results in line. Stable growth underpinned by solid asset quality. China Eastern Airlines (670 HK/HOLD/HK$3.96/Target: HK$4.00) 3Q19: 9.8% yoy rise in net profit aided by state cost-cutting measures and higher grants. China Merchants Bank Co (3968 HK...

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Construction Bank - 3Q19: Results in line. Stable growth underpinned by solid asset quality.

CCB achieved relatively flat growth in 9M19 as revenue and net profit recorded growth of 6.8% yoy and 5.2% yoy respectively. NIM was squeezed as expected but loan growth was in line with expectations. The improvement in asset quality was evident from a lower NPL ratio and higher provision coverage. With superior capital management capabilities, current level of capital reserve is sufficient to support the bank’s growth through to 2022. Maintain BUY with a target price of HK$7.23.

Salikin Siti

China Construction Bank Corporation

CHINA CON.BK.CORPORATION sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of CHINA CON.BK.CORPORATION (HK), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date October 18, 2019, the closing price was HKD 6.26 and its potential was estimated at HKD 6.60.

Salikin Siti

China Construction Bank Corporation

UOB
Carol Dou Xiao Qin ...
  • Charles Wong Kok Min
  • Eric Wang Zhen
  • Jayson Kong
  • Joyce Chan Pui Lai
  • K Ajith
  • Michael Cheung Ho Bun
  • Neo Chen Wentao
  • Sandra Huang Jieqiong

Greater China Daily: Thursday, October 31, 2019

KEY HIGHLIGHTS Results Angang Steel (347 HK/HOLD/HK$2.68/Target: HK$2.53) 3Q19: Net profit slumped 88% yoy on margin squeeze; headwinds persist. Bank of Ningbo (002142 CH/HOLD/Rmb26.82/Target: Rmb24.80) 3Q19: Results beat market expectations, capital raised for future growth. China Construction Bank (939 HK/BUY/HK$6.23/Target: HK$7.23) 3Q19: Results in line. Stable growth underpinned by solid asset quality. China Eastern Airlines (670 HK/HOLD/HK$3.96/Target: HK$4.00) 3Q19: 9.8% yoy rise in net profit aided by state cost-cutting measures and higher grants. China Merchants Bank Co (3968 HK...

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Construction Bank - 3Q19: Results in line. Stable growth underpinned by solid asset quality.

CCB achieved relatively flat growth in 9M19 as revenue and net profit recorded growth of 6.8% yoy and 5.2% yoy respectively. NIM was squeezed as expected but loan growth was in line with expectations. The improvement in asset quality was evident from a lower NPL ratio and higher provision coverage. With superior capital management capabilities, current level of capital reserve is sufficient to support the bank’s growth through to 2022. Maintain BUY with a target price of HK$7.23.

Salikin Siti

China Construction Bank Corporation

Salikin Siti

China Construction Bank Corporation

Rudziah Siti

China Construction Bank

UOB
Carol Dou Xiao Qin ...
  • Charles Wong Kok Min
  • Eric Wang Zhen
  • Jayson Kong
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • K Ajith
  • Katrina Chen Chucan
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Neo Chen Wentao
  • Nick Liu Sunliang
  • Sandra Huang Jieqiong
  • Shaun Tan
  • Tham Mun Hon
  • Zhifeng Shen

Greater China Daily: Thursday, August 29, 2019

KEY HIGHLIGHTS Economics The Big Picture Financing squeeze may prove to be the Achilles heel of FAI growth. Results China Construction Bank (939 HK/BUY/HK$5.80/Target: HK$7.23) 1H19: Results in line; NIM squeezed as expected, but asset quality improved. China Jinmao Holdings (817 HK/BUY/HK$4.75/Target: HK$5.30) 1H19: Top-line disappoints but core profit in line; stable gross margins. China Molybdenum (3993 HK/HOLD/HK$2.09/Target: HK$2.30) 1H19: Results below expectation; production of major products and ASPs dropped. China Southern Airlines (1055 HK/BUY/HK$4.41/Target: HK$5.40) 1H19: R...

UOB
Jayson Kong ...
  • Joyce Chan Pui Lai
  • K Ajith
  • Neo Chen Wentao
  • Nick Liu Sunliang
  • Sandra Huang Jieqiong
  • Tham Mun Hon

Greater China Daily: Tuesday, June, 11, 2019

KEY HIGHLIGHTS CHINA Economics Trade Better-than-expected exports unlikely to be sustainable. Sector Property Weekly: Developers with strong sales. Update China Resources Cement Holdings (1313 HK/BUY/HK$7.20/Target: HK$9.27) Infrastructure demand observed; margins to sustain in 2H19. HONG KONG Update BOC Aviation (2588 HK/HOLD/HK$65.85/Target: HK$69.00) Slowing pax traffic, weak Libor and uncertainty over B737 Max recertification could curtail outperformance in 2H19; downgrade to HOLD. TRADERS’ CORNER CCB (939 HK): Trading Buy Range Beijing Enterprises Water (371 HK): Trading B...

UOB
Eric Wang Zhen ...
  • Johnny Yum Chung Man
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • K Ajith
  • Ken Lee
  • Lee Yuk Kei
  • Robin Yuen

Greater China Daily: Thursday, May, 2, 2019

KEY HIGHLIGHTS CHINA Sector Aviation Flat pax yields in 1Q19; earnings could improve in 2H19 with a cut in civil aviation development fee. Results China Construction Bank (939 HK/BUY/HK$6.93/Target: HK$9.00) 1Q19: Margins squeezed but non-interest income boosted. China Merchants Bank (3968 HK/BUY/HK$38.85/Target: HK$45.59) 1Q19: Steady growth supported by strong balance sheet. Guangzhou Automobile Group (2238 HK/BUY/HK$8.43/Target: HK$12.00) 1Q19: Core net profit falls 42% yoy but surges 279% qoq, slightly missing estimates. Industrial and Commercial Bank of China (1398 HK/BUY/HK$5.89...

UOB
Johnny Yum Chung Man ...
  • Joyce Chan Pui Lai
  • Ken Lee
  • Robin Yuen
  • Zhifeng Shen

Greater China Daily: Wednesday, April, 17, 2019

KEY HIGHLIGHTS CHINA Shariah Gems Conference Highlights China Gas (384 HK/BUY/HK$25.55/Target: HK$35.44) Key takeaways from Malaysia Shariah Gems Conference: Organic expansion in FY19 gas sales. China Lilang (1234 HK/NOT RATED/HK$8.81) Smart casual and e-commerce driving growth Geely Auto (175 HK/BUY/HK$16.68/Target: HK$20.00) Takeaways from Malaysia Shariah Gems Conference: Updates on sales, margins, competition, partnerships and strategies. TRADERS’ CORNER CCB (939 HK): Trading Buy Range China Education (839 HK): Trading Buy Range

CHINA CON.BK.CORPORATION sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of CHINA CON.BK.CORPORATION (HK), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date October 18, 2019, the closing price was HKD 6.26 and its potential was estimated at HKD 6.60.

Rudziah Siti

China Construction Bank

Rudziah Siti

China Construction Bank

Rudziah Siti

China Construction Bank

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Rudziah Siti

China Construction Bank

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UOB
Eric Wang Zhen ...
  • Jayson Kong

Banking - Mind the gap: Divergence in asset quality surfaces.

China’s industrial profits and loan growth broadly deteriorated in August as economic growth continued to slide. We remain concerned over rising off-balance NPL as divergence in asset quality between large and small banks has started to surface. While we expect asset quality of large banks to be stable, NIM compression remains a downside risk in a low bond yield environment. Maintain MARKET WEIGHT on the sector; top pick is China Construction Bank (939 HK).

UOB
Eric Wang Zhen ...
  • Jayson Kong

Banking - 1H19 results round-up: In line; asset quality improves.

Most banks have released their 1H19 results. Revenue and profit growth were in line with expectations while loan growth was flat, as expected. Asset quality improved but some joint stock banks may not have enough provisions. NIMs expanded due to lower rates for interbank borrowing. Wholesale-funded banks benefitted. Maintain MARKET WEIGHT on the sector. Top pick is China Merchants Bank (3968 HK).

UOB
Eric Wang Zhen ...
  • Jayson Kong

Banking - Pressure remains on sector asset quality and NIM.

NPL remains our major concern on the sector. As the economy remains weak, banks are faced with pressure on asset quality, especially small banks with low provisions. For large banks, we believe asset quality will be stable. That said, a low market rate and moderating loan growth will pile pressure on banks’ NIM. Maintain MARKET WEIGHT on the sector; top pick is China Construction Bank.

UOB
Eric Wang Zhen ...
  • Jayson Kong

Banking - Current situation is unfriendly to small and medium-sized banks

The events at Baoshang Bank, Bank of Jinzhou and Hengfeng Bank exposed a serious credit risk in the banking sector. Doubtful off-balance asset quality may cause the collapse of the banking system. Interbank lenders are now concerned about lending to small banks, with them facing a lack of liquidity, increasing NPL and rising borrowing cost. Maintain MARKET WEIGHT on the sector with top pick China Merchants Bank (3968 HK), downgrade CRCB (3618 HK) to SELL.

UOB
Eric Wang Zhen ...
  • Jayson Kong

Banking - Pessimistic on sector NIMs and asset quality of small banks.

We expect to see a divergence in asset quality between large banks and small banks while NIMs could come under pressure in 2H19. Meanwhile, the implementation of monetary easing policies by the PBOC should cause the market rate to trend lower. We expect large joint-stock banks to outperform the Big 4 banks as they have better liability structures against the backdrop of NIM contractions. Downgrade to MARKET WEIGHT. Our top pick is China Merchants Bank (3968 HK).

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