Credit Suisse: Maintains underperform rating target on Minsheng Bank (1988.HK) to HK $2.75

2022-06-14 0 By

Minsheng Bank (1988.HK) posted a year-on-year profit growth of 0.2 percent to 34.4 billion yuan last year, credit Suisse said in a report. Fourth-quarter earnings alone fell 63 percent year-on-year, 2.3 percent below the bank’s expectations and more than 9 percent below market expectations.The bank said it lowered its target price to HK $2.75 from HK $2.80, maintained its’ underperform ‘rating, and lowered its profit forecasts for this year and next by 2.1% and 2.2% respectively.Credit Suisse sees improved performance and dividend yield attraction, but the bank, in the second year of its two-year consolidation plan, is expected to post a return on assets and equity of around 6.5 percent, the lowest among banks covered by the bank.