Bank of America Securities lowered the profit forecast for Chongqing Rural Commercial Bank (03618) for the 2024-2026 fiscal year by 5% to 7%.
The Zhitong Finance App learned that Bank of America Securities released a research report stating that it maintains the “buy” rating of Chongqing Rural Commercial Bank (03618), believes that the valuation is attractive and that the dividend rate is high (9.3%). Furthermore, the company's overall performance in fiscal year 2024 is expected to be better than the first quarter, but there are still challenges. Based on the continuing operating challenges of CNBC, its profit forecast for the 2024-2026 fiscal year was lowered by 5% to 7%, and the target price was lowered from HK$4 to HK$3.4. The bank estimates that the company's profit in the first quarter was weak, and the net profit growth recorded a high decline in units on an annual basis. Mainly due to a one-time recovery of bad loans from a customer, the base of impairment loss/credit costs in the first quarter of last year was extremely low.