China International Capital Corporation (CICC) issued a report on August 30th, stating that China Merchants Bank's revenue and net income for the first half of the year decreased by 3.1% and 1.3% respectively compared to the previous year. For the second quarter, revenue and net income decreased by 1.5% and 0.7% respectively compared to the previous year, with a narrower decline compared to the first quarter. As of now, China Merchants Bank's A-share and H-share dividend yields for 2024 are 6.2% and 6.8% respectively, higher than the average of 4.9% for the four major banks' A-shares, but lower than the average of 7.5% for H-shares. CICC believes that the current stock price of China Merchants Bank does not fully reflect its stable performance and high dividend attributes. The bank's solid asset quality, sustainable internal capital replenishment ability, higher ROE, and dividend level all highlight China Merchants Bank's medium to long-term value. CICC reaffirms its recommendation for China Merchants Bank as the top pick for high dividend banks with an "outperform" rating. The target price for China Merchants Bank's H-shares has been raised by 22.6% to HKD 43.34, equivalent to a projected price-to-book ratio of 1 times for this year.
研报掘金｜中金：上调招商银行目标价至43.34港元 重申其为高股息银行的首推股份
Research reports from CICC: Raise the target price of cm bank to HK$43.34, reiterating it as the first recommended stock for high dividend banks.
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