CICC Increases Target Price for BANK OF E ASIA (00023.HK) to $18.03, Maintains Neutral Rating
Company Performance: Bank of East Asia's 2025 results fell short of expectations, with operating income at $21 billion (up 0.2% YoY) and net profit at $3.2 billion (down 20.1% YoY), primarily due to one-off factors and property impairment.
Future Outlook: CICC has a positive outlook, raising its 2026/2027 net profit forecasts by 42.5% and 49%, respectively, and increasing operating income forecasts, leading to a 28% target price increase to $18.03 while maintaining a Neutral rating.
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Jefferies Upgrades HKEX to Buy and Increases Price Targets for BEA and BOCHK
Positive Outlook for Hong Kong Financial Stocks: Jefferies is optimistic about Hong Kong financial stocks in 2023, driven by an active IPO market, cross-border capital flows, and a recovering residential property market, with expectations of HIBOR normalization by 1H26.
Stock Recommendations: Jefferies upgraded HKEX to Buy, raising its target price from HKD373.94 to HKD502, citing its higher leverage effect and attractive valuations.
Local Banks Performance: While local bank stocks are expected to yield positive returns, they may lag behind international counterparts due to lower capital returns, with BOC Hong Kong rated Hold and its target price increased from HKD31 to HKD48.
Bank of East Asia Insights: Jefferies anticipates high credit costs for Bank of East Asia but sees trading opportunities linked to potential index inclusion and property market recovery, raising its target price from HKD12 to HKD16.
Jefferies Upgrades HKEX to Buy and Increases Price Targets for BEA and BOCHK
Positive Outlook for Hong Kong Financial Stocks: Jefferies predicts a favorable year for Hong Kong financial stocks, driven by an active IPO market, cross-border capital flows, and a recovering residential property market, with expectations of HIBOR normalization by 1H26.
Stock Recommendations: Jefferies upgraded HKEX to Buy, raising its target price from HKD373.94 to HKD502, citing its higher leverage effect and attractive valuations.
Local Banks Performance: While local bank stocks are expected to yield positive returns, they may lag behind international counterparts due to lower capital returns, with BOC Hong Kong and Bank of East Asia rated Hold.
Target Price Adjustments: Jefferies increased the target price for BOC Hong Kong from HKD31 to HKD48 and for Bank of East Asia from HKD12 to HKD16, highlighting potential trading opportunities amid high credit costs and market recovery.
Citi Upgrades BANK OF E ASIA to Buy Rating and Increases Target Price to HKD16
Strategic Guidance: BANK OF E ASIA aims to increase its ROE target to 7% by 2028, up from 3.1% in 2025, with market expectations at 5.1%, according to a Citi report.
Dividend Projections: The bank's dividend target for 2028 is set to double from the 2025 level, projecting a DPS of approximately HKD1.2.
Citi's Forecast: Citi forecasts that ROE will reach 6% by 2028, which is below the bank's target but above the general market forecast of 5.1%.
Stock Upgrade: Following its inclusion in the Hang Seng Composite Index, Citi upgraded BANK OF E ASIA from Neutral to Buy, raising the target price from HKD14.9 to HKD16.
G Sachs Assigns Sell Rating to BANK OF E ASIA, Increases Target Price to HKD14; 2H25 Net Profit Expected to Fall Short
Bank of East Asia's Profit Decline: The Bank of East Asia reported a 57% year-over-year drop in net profit for 2H25, totaling HKD947 million, which was 34% below Goldman Sachs' forecast.
Impairments and Losses: The significant profit decline was attributed to a HKD625 million impairment on investment properties and a one-time loss from its associate, Guotong Trust, in China.
Goldman Sachs' Rating and Target Price: Goldman Sachs maintained a Sell rating on the Bank of East Asia while raising its target price from HKD13.5 to HKD14.
Market Activity: The bank's stock experienced a short selling of $13.29 million, with a short selling ratio of 11.105%.
CICC Increases Target Price for BANK OF E ASIA (00023.HK) to $18.03, Maintains Neutral Rating
Company Performance: Bank of East Asia's 2025 results fell short of expectations, with operating income at $21 billion (up 0.2% YoY) and net profit at $3.2 billion (down 20.1% YoY), primarily due to one-off factors and property impairment.
Future Outlook: CICC has a positive outlook, raising its 2026/2027 net profit forecasts by 42.5% and 49%, respectively, and increasing operating income forecasts, leading to a 28% target price increase to $18.03 while maintaining a Neutral rating.
HSBC Research Increases BANK OF E ASIA's Target Price to HKD14.8; Previous Year's Earnings Fall Short
Earnings Forecasts: HSBC Global Research reports that BANK OF E ASIA's 2025 EPS is projected to drop by 20% YoY to HKD1.22, missing market expectations by 13.8% and 15.9%.
Dividends and Payout Ratio: The bank's dividends have decreased by 11.6% to HKD0.61, with the payout ratio increasing from 45% in 2024 to 50%.
Revised Earnings Estimates: HSBC has adjusted its earnings forecasts for BANK OF E ASIA for 2026-27 down by 3.5% and 12.4%, respectively.
Target Price Update: Despite the lowered earnings outlook, HSBC maintains a Hold rating on the stock and has raised its target price from HKD14 to HKD14.8.
Jefferies Upgrades HKEX to Buy and Increases Price Targets for BEA and BOCHK
Positive Outlook for Hong Kong Financial Stocks: Jefferies is optimistic about Hong Kong financial stocks in 2023, driven by an active IPO market, cross-border capital flows, and a recovering residential property market, with expectations of HIBOR normalization by 1H26.
Stock Recommendations: Jefferies upgraded HKEX to Buy, raising its target price from HKD373.94 to HKD502, citing its higher leverage effect and attractive valuations.
Local Banks Performance: While local bank stocks are expected to yield positive returns, they may lag behind international counterparts due to lower capital returns, with BOC Hong Kong rated Hold and its target price increased from HKD31 to HKD48.
Bank of East Asia Insights: Jefferies anticipates high credit costs for Bank of East Asia but sees trading opportunities linked to potential index inclusion and property market recovery, raising its target price from HKD12 to HKD16.
Jefferies Upgrades HKEX to Buy and Increases Price Targets for BEA and BOCHK
Positive Outlook for Hong Kong Financial Stocks: Jefferies predicts a favorable year for Hong Kong financial stocks, driven by an active IPO market, cross-border capital flows, and a recovering residential property market, with expectations of HIBOR normalization by 1H26.
Stock Recommendations: Jefferies upgraded HKEX to Buy, raising its target price from HKD373.94 to HKD502, citing its higher leverage effect and attractive valuations.
Local Banks Performance: While local bank stocks are expected to yield positive returns, they may lag behind international counterparts due to lower capital returns, with BOC Hong Kong and Bank of East Asia rated Hold.
Target Price Adjustments: Jefferies increased the target price for BOC Hong Kong from HKD31 to HKD48 and for Bank of East Asia from HKD12 to HKD16, highlighting potential trading opportunities amid high credit costs and market recovery.
Citi Upgrades BANK OF E ASIA to Buy Rating and Increases Target Price to HKD16
Strategic Guidance: BANK OF E ASIA aims to increase its ROE target to 7% by 2028, up from 3.1% in 2025, with market expectations at 5.1%, according to a Citi report.
Dividend Projections: The bank's dividend target for 2028 is set to double from the 2025 level, projecting a DPS of approximately HKD1.2.
Citi's Forecast: Citi forecasts that ROE will reach 6% by 2028, which is below the bank's target but above the general market forecast of 5.1%.
Stock Upgrade: Following its inclusion in the Hang Seng Composite Index, Citi upgraded BANK OF E ASIA from Neutral to Buy, raising the target price from HKD14.9 to HKD16.
G Sachs Assigns Sell Rating to BANK OF E ASIA, Increases Target Price to HKD14; 2H25 Net Profit Expected to Fall Short
Bank of East Asia's Profit Decline: The Bank of East Asia reported a 57% year-over-year drop in net profit for 2H25, totaling HKD947 million, which was 34% below Goldman Sachs' forecast.
Impairments and Losses: The significant profit decline was attributed to a HKD625 million impairment on investment properties and a one-time loss from its associate, Guotong Trust, in China.
Goldman Sachs' Rating and Target Price: Goldman Sachs maintained a Sell rating on the Bank of East Asia while raising its target price from HKD13.5 to HKD14.
Market Activity: The bank's stock experienced a short selling of $13.29 million, with a short selling ratio of 11.105%.
CICC Increases Target Price for BANK OF E ASIA (00023.HK) to $18.03, Maintains Neutral Rating
Company Performance: Bank of East Asia's 2025 results fell short of expectations, with operating income at $21 billion (up 0.2% YoY) and net profit at $3.2 billion (down 20.1% YoY), primarily due to one-off factors and property impairment.
Future Outlook: CICC has a positive outlook, raising its 2026/2027 net profit forecasts by 42.5% and 49%, respectively, and increasing operating income forecasts, leading to a 28% target price increase to $18.03 while maintaining a Neutral rating.
HSBC Research Increases BANK OF E ASIA's Target Price to HKD14.8; Previous Year's Earnings Fall Short
Earnings Forecasts: HSBC Global Research reports that BANK OF E ASIA's 2025 EPS is projected to drop by 20% YoY to HKD1.22, missing market expectations by 13.8% and 15.9%.
Dividends and Payout Ratio: The bank's dividends have decreased by 11.6% to HKD0.61, with the payout ratio increasing from 45% in 2024 to 50%.
Revised Earnings Estimates: HSBC has adjusted its earnings forecasts for BANK OF E ASIA for 2026-27 down by 3.5% and 12.4%, respectively.
Target Price Update: Despite the lowered earnings outlook, HSBC maintains a Hold rating on the stock and has raised its target price from HKD14 to HKD14.8.
