CICC: Maintains 'Outperform' Rating on China Merchants Bank, Target Price of 16.06 Yuan

The research report from Zhongjin Securities pointed out that in the second quarter, the revenue of Shanghai Pudong Development Bank increased by 4.0% year-on-year, accelerating compared to the 1.3% growth in the first quarter. The overall revenue for the first half of the year increased by 2.6% year-on-year. The net profit attributable to shareholders in the second quarter increased significantly by 26.9% year-on-year, and the overall net profit attributable to shareholders in the first half of the year increased by 10.2% year-on-year. The bank believes that the better profit performance in the second quarter was mainly due to the improvement in asset quality and the decrease in the profit base in the single quarter. The performance is consistent with previous announcements and meets expectations. The profit forecast and target price of 16.06 yuan are maintained, with an upward potential of 16.8% compared to the current stock price. The bank's "outperform industry" rating is maintained.