Glory 5th November | DBS has released a research report stating that China Construction Bank Corporation's investment income performance in the third quarter was strong, consistent with other state-owned banks. China Construction Bank Corporation successfully reversed its loss in the first half of the year, recording a profit growth of 0.7% in the first three quarters, mainly driven by active trading in forex, bonds, and stock markets. The bank pointed out that China Construction Bank Corporation's investment roi as of the end of September reached 11% in the first three quarters, the highest among the four major banks and with lower valuations. The dividend yield for the fiscal year 2025 is expected to exceed 7%, the highest among the four major banks. DBS currently predicts that China Construction Bank Corporation's average annual compound profit growth rate will reach about 2% between 2023 and 2026, slightly lower than the previous expectation of 2.7%. Like its peers, DBS believes that China Construction Bank Corporation's net interest margin will be under pressure in the next two years, with its net interest margin forecasts being reduced by 2 and 4 basis points respectively. DBS believes that China Construction Bank Corporation's risk in domestic mortgage loans is higher than other banks, but is confident that a series of measures introduced by the central government can provide support to the property market, expecting mainland property prices to gradually stabilize, which will be beneficial to China Construction Bank Corporation's stock price. DBS reiterates a "buy" rating for China Construction Bank Corporation and raises the target price to 7 Hong Kong dollars.