China Construction Bank (H)

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

CHINA CON.BANK 'H' with less fundamental stars is reduced to Neutral

CHINA CON.BANK 'H' (HK), a company active in the Money Center Banks industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date November 20, 2020, the closing price was HKD 5.86 and its expected value was estimated at HK...

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Construction Bank (939 HK) : 3Q20: In line; qoq improvement in NIM a key positive.

CCB’s PPOP growth improved to 7.2% yoy, but net profit continued to decline as growth in new provisions remained elevated at 41.4% yoy in 3Q20. Notably, the qoq NIM expansion likely signals sequential easing of “national service” duties. Guidance was generally positive. Key takeaways are: a) the advanced achievement of full-year growth target for SME loans; and b) definite exemption from ceiling imposed on lending rate. Maintain BUY. Target price: HK$6.46.

UOB
Carol Dou Xiao Qin ...
  • Cherrie Tan Yue
  • Eric Wang Zhen
  • Jayson Kong
  • Johnny Yum Chung Man
  • Ken Lee
  • Neo Chen Wentao
  • Sandra Huang Jieqiong
  • Tham Mun Hon

Greater China Daily: Monday, November 2, 2020

KEY HIGHLIGHTS Economics PMI Beating expectations, but still a mixed bag. Results China Construction Bank (939 HK/BUY/HK$5.35/Target: HK$6.46) 3Q20: In line; qoq improvement in NIM a key positive Estun Automation (002747 CH/BUY/Rmb22.16/Target: Rmb26.00) 3Q20: Missed estimates, but positive outlook remains intact. Fuyao Glass Industry Group (3606 HK/BUY/HK$32.85/Target: HK$39.00) 3Q20: Core earnings spiked 83% yoy, beating estimates. Raise target price to HK$39.00; upgrade to BUY. Ganfeng Lithium-H (1772 HK/HOLD/HK$46.10/Target: HK$45.00) 3Q20: Margins squeezed amid weak lithium market;...

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Banking : NIM To Narrow But Expect Less "National Service" Efforts In 2021.

While the PBOC has not given any “window guidance” on profit transfer in 2021, our analysis suggests the economic obligation to only be at 25% of that in 2020. Meanwhile, with declining market lending rate and increasing deposit cost, we foresee another 5bp NIM compression in 1H21. The central government’s efforts to cool down the property sector would have more of an adverse impact on banks with larger property-related loan exposure (mostly SOEs). Maintain MARKET WEIGHT.

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Banking : "National service" Impact reflected in Banks' 1H20 performance; Prefer JSBs.

The sector’s net profit contracted 9.9% yoy and 24.6% yoy in 1H20 and 2Q20 respectively as more provisions were made. Performance across various bank types was mixed as we are starting to see the repercussions of “national service” play out. Positively, the PBOC has signalled greater clarity on that front. Key uncertainties weighing on banks’ valuations continue to be asset quality and the subsequent capital inadequacy arising from NPL disposal. We prefer JSBs amid fewer “national service” concerns. Maintain MARKET WEIGHT. Top pick is CMB (3968 HK).

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Construction Bank (939 HK) : 3Q20: In line; qoq improvement in NIM a key positive.

CCB’s PPOP growth improved to 7.2% yoy, but net profit continued to decline as growth in new provisions remained elevated at 41.4% yoy in 3Q20. Notably, the qoq NIM expansion likely signals sequential easing of “national service” duties. Guidance was generally positive. Key takeaways are: a) the advanced achievement of full-year growth target for SME loans; and b) definite exemption from ceiling imposed on lending rate. Maintain BUY. Target price: HK$6.46.

UOB
Carol Dou Xiao Qin ...
  • Cherrie Tan Yue
  • Eric Wang Zhen
  • Jayson Kong
  • Johnny Yum Chung Man
  • Ken Lee
  • Neo Chen Wentao
  • Sandra Huang Jieqiong
  • Tham Mun Hon

Greater China Daily: Monday, November 2, 2020

KEY HIGHLIGHTS Economics PMI Beating expectations, but still a mixed bag. Results China Construction Bank (939 HK/BUY/HK$5.35/Target: HK$6.46) 3Q20: In line; qoq improvement in NIM a key positive Estun Automation (002747 CH/BUY/Rmb22.16/Target: Rmb26.00) 3Q20: Missed estimates, but positive outlook remains intact. Fuyao Glass Industry Group (3606 HK/BUY/HK$32.85/Target: HK$39.00) 3Q20: Core earnings spiked 83% yoy, beating estimates. Raise target price to HK$39.00; upgrade to BUY. Ganfeng Lithium-H (1772 HK/HOLD/HK$46.10/Target: HK$45.00) 3Q20: Margins squeezed amid weak lithium market;...

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Banking : NIM To Narrow But Expect Less "National Service" Efforts In 2021.

While the PBOC has not given any “window guidance” on profit transfer in 2021, our analysis suggests the economic obligation to only be at 25% of that in 2020. Meanwhile, with declining market lending rate and increasing deposit cost, we foresee another 5bp NIM compression in 1H21. The central government’s efforts to cool down the property sector would have more of an adverse impact on banks with larger property-related loan exposure (mostly SOEs). Maintain MARKET WEIGHT.

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Banking : "National service" Impact reflected in Banks' 1H20 performance; Prefer JSBs.

The sector’s net profit contracted 9.9% yoy and 24.6% yoy in 1H20 and 2Q20 respectively as more provisions were made. Performance across various bank types was mixed as we are starting to see the repercussions of “national service” play out. Positively, the PBOC has signalled greater clarity on that front. Key uncertainties weighing on banks’ valuations continue to be asset quality and the subsequent capital inadequacy arising from NPL disposal. We prefer JSBs amid fewer “national service” concerns. Maintain MARKET WEIGHT. Top pick is CMB (3968 HK).

UOB
Eric Wang Zhen ...
  • Jayson Kong

China Construction Bank (939 HK) : 1H20: Slight miss; NPL ratio rose but actual overdue loan ratio inched down.

CCB’s 1H20 results came in slightly below expectations, largely due to the 49.2% yoy spike in provisions. Revenue and PPOP grew 7.7% yoy and 5.4% yoy respectively. The anticipated NIM compression was attributable to the performance of “national service” and rising cost of acquiring deposits. NPL ratio rose but the company has increased buffer against headwinds. Note that CCB continues to recognise all overdue loans (>1 day) as NPL. Maintain BUY. Target price: HK$6.46.

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...

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.BANK 'H' with less fundamental stars is reduced to Neutral

CHINA CON.BANK 'H' (HK), a company active in the Money Center Banks industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date November 20, 2020, the closing price was HKD 5.86 and its expected value was estimated at HK...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch