Two Directors at Ping An Bank Co Ltd bought/maiden bought 51,000 shares at between 18.100CNY and 18.150CNY. The significance rating of the trade was 62/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
PING AN BANK (CN), a company active in the Money Center Banks industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date February 19, 2021, the closing price was CNY 23.85 and its poten...
China regulators will impose a cap on domestic banks’ lending to the real estate sector. For Tier-1 large-scale banks, loans to developers will be capped at 40% while mortgage lending will be capped at 32.5% of their outstanding credit. The new rule shows that the regulators are firm in their stance in preventing speculation on the property market. There is limited impact on banks, but property market demand is expected to be hit hardly, which will then further tighten the developers’ liquidity ...
Larger banks (SOEs and JSBs) outperformed smaller ones (city banks and rural commercial banks) in asset quality and profit growth in 1Q20. Amid the current economic downturn, larger banks showed better NPL management ability while higher provisions offered protection from asset deterioration. Besides, larger banks showed a better ability to moderate NIM compression in the low interest environment. Upgrade the sector to MARKET WEIGHT; top pick is CCB (939 HK).
KEY HIGHLIGHTS Sector Property Gradually recovering from COVID-19 impact. Results Ping An Bank (000001 CH/BUY/Rmb12.99/Target: Rmb15.54) 1Q20: Growth and asset quality beat consensus but NIM compression in line; upgrade to BUY. Update Nexteer Automotive Group (1316 HK/SELL/HK$4.73/Target: HK$3.80) 1Q20 earnings risks remain high; downgrade from HOLD to SELL. XD Inc (2400 HK/NOT RATED/HK$21.10) Double-digit gaming revenue growth; EBIT missed consensus expectation TRADERS’ CORNER BO...
PAB achieved robust growth in 1Q20 as revenue and net profit rose 16.8% yoy and 14.8% yoy respectively. NIM compression was caused by declining lending rates. The improvement in asset quality was evident from its stable NPL ratio, lower special mention loan ratio and higher provision. Upgrade from HOLD to BUY with an unchanged target price of Rmb15.54.
GREATER CHINA Sector Property: Gradually recovering from COVID-19 impact. Results Ping An Bank (000001 CH/BUY/Rmb12.99/Target: Rmb15.54): 1Q20: Growth and asset quality beat consensus but NIM compression in line; upgrade to BUY. Update Nexteer Automotive Group (1316 HK/SELL/HK$4.73/Target: HK$3.80): 1Q20 earnings risks remain high; downgrade from HOLD to SELL. MALAYSIA Update IOI Corporation (IOI MK/HOLD/RM3.99/Target: RM3.90): 3QFY20 production below expectations; downgrade to HOLD with a lowe...
We foresee an all-round deterioration in the sector’s fundamentals in 2020, expecting an 8bp NIM compression and at least 6bp increase in NPL ratio. Banks should raise more capital in 2020 to prepare for a potentially higher default rate. Default rate on credit card loans may increase while asset quality on SME loans should also deteriorate in 2021 and 2022 (due to loan moratorium). Maintain UNDERWEIGHT on the sector; top pick is China Merchants Bank (3968 HK).
More than 56% of SOEs’ loans are backed by collateral which can protect them from a loss in principle repayment when default occurs. Besides that, SOEs also have a superior corporate/retail loan mix (more mortgages and less corporate loans) which offers better protection to asset quality against the COVID-19 impact. Maintain UNDERWEIGHT on the sector; top pick is China Merchants Bank (3968 HK).
Already wrestling a growth slowdown in 2019, we expect the Covid-19 epidemic to pile further pressure on China’s soft macro environment and weigh on banks’ asset quality. Meanwhile, the PBOC’s call for banks to support the real economy may potentially come at the expense of sector earnings. We believe poor fundamentals of unlisted small banks represent the weakest link in the banking system, and rising default risk has not been fully discounted by the market. Maintain UNDERWEIGHT; top BUY ...
Already wrestling a growth slowdown in 2019, we expect the Covid-19 epidemic to pile further pressure on China’s soft macro environment and weigh on banks’ asset quality. Meanwhile, the PBOC’s call for banks to support the real economy may potentially come at the expense of sector earnings. We believe poor fundamentals of unlisted small banks represent the weakest link in the banking system, and rising default risk has not been fully discounted by the market. Maintain UNDERWEIGHT; top BUY ...
Already wrestling a growth slowdown in 2019, we expect the Covid-19 epidemic to pile further pressure on China’s soft macro environment and weigh on banks’ asset quality. Meanwhile, the PBOC’s call for banks to support the real economy may potentially come at the expense of sector earnings. We believe poor fundamentals of unlisted small banks represent the weakest link in the banking system, and rising default risk has not been fully discounted by the market. Maintain UNDERWEIGHT; top BUY ...
KEY HIGHLIGHTS Results Ping An Bank (000001 CH/HOLD/Rmb15.03/Target: Rmb15.54) 2019: Results in line; CAR improves despite huge write-off in NPL. Update JD.com (JD US/BUY/US$41.97/Target: US$47.00) Standing out among peers amidst the COVID-19 outbreak on the back of its unique business model. Xiabuxiabu Catering Management (520 HK/BUY/HK$8.67/Target: HK$11.50) Beneficiary of market consolidation amid the coronavirus outbreak.
Ping An Bank achieved robust growth in 2019 as revenue and net profit grew 18.2% yoy and 13.7% yoy respectively. NIM expansion was driven by a decline in borrowing cost from the interbank market and higher returns from ordinary loans. The improvement in NPL ratio was caused by large write-offs. Capital management pressure was released after the issuance of convertible and perpetual bonds. Maintain HOLD and target price of Rmb15.54. Entry price: Rmb14.10.
NPL levels remain our main concern. As the economy remains weak, banks are facing pressure in asset quality, especially small banks which have low provisions. We found that the rate spread between the NCD issued by SOEs and by small banks is expanding. Maintain UNDERWEIGHT on the sector; top pick is Bank of Ningbo (SELL).
KEY HIGHLIGHTS Sector Insurance Higher premiums growth driven by life segment, unlikely to be sustainable. Results Ping An Bank (000001 CH/HOLD/Rmb16.89/Target: Rmb15.54) 3Q19: Valuation supported by improved asset quality and market-leading position in retail banking business. Update Cathay Pacific Airways (293 HK/SELL/HK$9.90/Target: HK$9.30) Traffic stabilises but cash crunch continues. TRADERS’ CORNER Meituan - W (3690 HK): Trading Buy Range China Life (2628 HK): Trading Buy Ran...
PAB achieved robust growth in 9M19 as revenue and net profit recorded growth of 18.8% yoy and 15.5% yoy respectively. NIM expansion was driven by a decline in borrowing cost from the interbank market. The improvement in asset quality was evident from lower NPL and special mention loans ratio, as well as higher provisions. As PAB’s market-leading position in the retail business supports its high valuation, we maintain HOLD with a higher target price of Rmb15.54. Entry price: Rmb14.20.
GREATER CHINA Sector Insurance: Higher premiums growth driven by life segment, unlikely to be sustainable. Results Ping An Bank (000001 CH/HOLD/Rmb16.89/Target: Rmb15.54): 3Q19: Valuation supported by improved asset quality and market-leading position in retail banking business. Update Cathay Pacific Airways (293 HK/SELL/HK$9.90/Target: HK$9.30): Traffic stabilises but cash crunch continues. INDONESIA Update Sarana Menara Nusantara (TOWR IJ/BUY/Rp660/Target: Rp950): Fair valuation for tower acq...
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