Gelonghui, January 2 | CICC released a research report stating that it has restored coverage of Minsheng Bank and given a “outperforming industry” rating. The target price for H shares is HK$3.73, which corresponds to the predicted market account ratio of 0.3 times this year. The bank pointed out that the Bank of China has strong risk management, internal control and compliance capabilities, which help improve the business foundation and quality. Management is actively mitigating existing risks. The net non-performing loan formation rate continues to decline. At the same time, the return on net assets is also more flexible than the peer average. It predicts that the Bank of China's net interest spread may drop to 1.41% this year, and there is limited room for downside. CICC believes that as asset quality improves, the benefits of profit growth will also become apparent. It is expected that domestic banks with high institutional shareholding ratios and strong growth in the past may face greater downward fundamental pressure and valuation concessions. It predicts that the profit per share from 2023 to 2025 will reach 0.7, 0.76 and 0.82 yuan, respectively, with compound annual growth rates of 5.4%, and net profit expectations of 35.3 billion yuan, 37.8 billion yuan and 40.5 billion yuan, respectively.