Morgan Stanley raises target price for CQRC Bank (03618) to 3.5 Hong Kong dollars, with a rating of "underweight"

Morgan Stanley released a research report stating that after the announcement of the first quarter performance of CQRC BANK (03618), it lowered its investment income forecasts for 2025 to 2027 by 2.4%, 1.4%, and 1.5% to reflect a more rational growth in investment income under a high base last year. The bank also lowered its credit cost forecasts for 2025 to 2027 by 4, 5, and 6 basis points. Based on the above forecast adjustments, the bank raised its after-tax net profit and earnings per share forecasts for the Agricultural Bank of China for 2025 to 2027 by 1.9%, 2.2%, and 4%, and slightly raised the target price by 2.9%, from 3.4 Hong Kong dollars to 3.5 Hong Kong dollars, with a "hold" rating.