DBS: Raise BOC HONG KONG (02388) target price to 34.5 Hong Kong dollars and reiterate "Buy" rating.

DBS released a research report stating that BOC HONG KONG (02388) exceeded expectations in the fiscal year 2024, with a net profit increasing by 16.8% year-on-year to HK$38.2 billion. The bank raised its profit forecast for the fiscal years 2025/2026 by 10%/7% mainly due to the strong performance in the fiscal year 2024 and the assumption of an increase in non-interest income. It reiterated a "buy" rating and raised the target price from HK$28.5 to HK$34.5. Compared to its peers, the stock's risk-return profile is attractive, with a dividend yield of over 6%.