JPMorgan still prefers the four major domestic banks with stable profitability and high yield, in order of preference: ICBC (01398), ABC (01288), CCB (00939), and BOC (03988).
According to the report published by JPMorgan, it remains bullish on the performance of domestic banks in the second half of the year. The target price for BOC (03988) has been raised from HKD 4 to HKD 4.2, for CCB (00939) from HKD 6.55 to HKD 6.7, for CMB (03968) from HKD 44 to HKD 46, for China CITIC Bank Corporation (00998) from HKD 4.4 to HKD 4.55, and for China Postal Savings Bank Co.Ltd (01658) from HKD 4.3 to HKD 4.6.
JPMorgan continues to prefer the four major domestic banks with stable profitability and high yield, in order of preference: ICBC (01398), ABC (01288), CCB (00939), and BOC (03988). The analysis shows that the dividend yield gap is still attractive to southward and A-share investors, who can increase their shareholding during any weak trend. The bank believes that the domestic banking industry will mainly benefit from the regulatory focus shifting to safeguarding net income of banks, as well as policy support for stable macroeconomic growth prospects in the second half of the year. It is expected that domestic bank revenues and profits will turn to growth in the second half of the year.
