Daiwa: Raises target price for China Merchants Bank (03968) to HKD 63.4, updates risk-return assessment.

According to the Wisdom Financial APP, Morgan Stanley released a research report stating that they have updated the risk-return assessment of China Merchants Bank (03968), adjusted their profit forecast for the bank following the announcement of its third quarter performance, and lowered their forecast for the bank's net interest margin due to slower-than-expected recovery after the third quarter results. Therefore, Morgan Stanley has lowered their earnings per share forecast for China Merchants Bank for the years 2025 to 2027 by 1%, 2.9%, and 3.1% respectively. Taking into account the consistent premium of China Merchants Bank's H shares compared to its A shares (600036.SH), Morgan Stanley removed the 10% discount valuation level previously applied to China Merchants Bank's H shares when assessing their market to book ratio. As a result, they have raised the target price of China Merchants Bank's H shares from 61 Hong Kong dollars to 63.4 Hong Kong dollars, with a "hold" rating.