Goldman Sachs: Slightly raises the target price of China Merchants Bank's A+H shares and maintains a "buy" rating.

Goldman Sachs released a research report stating that China Merchants Bank has announced its preliminary performance for last year, with revenue and net profit of 338 billion yuan and 150 billion yuan respectively. This implies that the revenue and net profit for the fourth quarter of 2025 will be 86 billion yuan and 36 billion yuan respectively. The bank's forecast for China Merchants Bank's revenue and net profit in 2026 are 355 billion yuan and 163 billion yuan, which are 3% and 5% higher than the Bloomberg market consensus, equivalent to an annual growth of 7% and 8% respectively, compared to the average growth of the four major banks at 5% and 3%. The bank expects 2026 to be a moment when China Merchants Bank's net profit growth trajectory diverges from the four major banks, mainly because it is unlikely that China Merchants Bank will significantly increase provisions, thus accelerating profit growth under strong revenue momentum. Goldman Sachs maintains its "buy" rating on the stock and raises its H-share target price from 53.41 Hong Kong dollars to 53.44 Hong Kong dollars, and its A-share target price from 54.68 yuan to 54.71 yuan.