GLONGHUI, August 17 | According to a report published by Morgan Stanley, Minsheng Bank has experienced three fundamental changes since 2020, including shifting from a product-led model to a customer-led model to improve customer experience; enhanced customer relationship management; and product strategy changes to focus on service quality rather than high-risk credit products. Minsheng Bank has also achieved initial transformation results through rapid growth in corporate clients and improved financing channel portfolio. The bank believes that as a private bank, it believes Minsheng Bank still maintains an advantage in terms of execution, but has a more independent business management strategy than before. The report predicts that Minsheng Bank will continue to transform over the next few years, and that its return on shareholders' equity (ROE) ratio (ROE) will continue to rise from 2023 to 2025. DAMO estimates that Minsheng Bank's ROE for each year from this year to 2025 will reach 6.5%, 7.4% and 8.4%, respectively, which will drive the private bank to be heavily evaluated. DAMO raised the target price of H shares from HK$4.3 to HK$4.5, maintained the “increase holdings” rating, and added it as the preferred stock in the domestic banking sector.