Posted on April 25,$CM BANK (03968.HK)$Up nearly 4%, up 3.63% at press time, to HK$34.25, with a turnover of HK$639 million.

In terms of performance, net operating income of 339.078 billion yuan (RMB, same below) was achieved in 2023; net profit attributable to shareholders was 146.602 billion yuan, up 6.22% year on year; realized net interest income of 214.669 billion yuan, down 1.63% year on year; realized non-interest net income of 124.409 billion yuan, down 1.66% year on year; average return on total assets attributable to shareholders (ROAA) and average return on net assets (ROAE) attributable to the bank's common shareholders were 1.39% and respectively 16.22%, a year-on-year decrease of 0.03 and 0.84 percentage points, respectively. The board of directors of the company proposed the payment of a cash dividend for 2023 on common shares, with a cash dividend of 1.972 yuan per share (tax included).

Huatai Securities said that the share of partial equity fund holdings in the 24q1 banking sector increased by 0.52 pct to 2.43% compared to 23q4. The top five major institutional stocks are China Merchants, Chengdu, Ningbo, ICBC, and Jiangsu. Looking at north-south capital, the 24Q1 Northbound and Southbound Capital Bank stock positions were 7.9% and 17.2%, respectively. In terms of valuation, as of April 22, the banking sector's A/H share PB (LF) valuation was 0.60x/0.40x, respectively. The A/H share banking sector's dividend rate in the past 12 months reached 5.10%/7.26%, and the dividend ratio advantage is still quite significant. Furthermore, the central bank issued a document to stabilize bank interest spreads, and the bottom of bank fundamentals has been consolidated to seize bottom allocation opportunities as high-quality, high-dividend, and low-volatility assets.