Daiwa: Raises target price for China Merchants Bank to 63.4 Hong Kong dollars and updates risk-return assessment.

Morgan Stanley released a research report stating that it has updated its risk-return assessment for China Merchants Bank, and adjusted its profit forecast for the bank after its third-quarter performance announcement; and based on the slower-than-expected recovery in net interest margin after the third-quarter performance, it has lowered its forecast for the bank's net interest margin. Therefore, Morgan Stanley has lowered the earnings per share forecast for China Merchants Bank for 2025 to 2027 by 1%, 2.9%, and 3.1% respectively; and considering that the H-shares of China Merchants Bank have always had a premium over the A-shares, Morgan Stanley has removed the 10% discount valuation level previously applied to the H-shares of China Merchants Bank when evaluating the market-to-book ratio of the bank. Therefore, the target price for the H-shares of China Merchants Bank has been raised from 61 Hong Kong dollars to 63.4 Hong Kong dollars, with a "hold" rating.