CITIC Securities International: Raises target price of Industrial and Commercial Bank of China (01398) to 8.34 Hong Kong dollars and maintains "buy" rating.

Bank of China International released a research report stating that Industrial and Commercial Bank of China (01398) is expected to see a 3.3% year-on-year increase in net profit attributable in the third quarter of 2025, with a growth rate higher than the 1.4% in the second quarter. The net interest margin for the first three quarters of 2025 was 1.27%, down from 1.3% in the first half of the year, a decrease of 15 and 12 basis points from the end of 2024, respectively. Based on a 2025 price-to-book ratio of about 0.7 times, Bank of China International has raised ICBC's target price from HK$7.15 to HK$8.34 and maintains a "buy" rating. Bank of China International stated that ICBC's H-share price currently corresponds to a 2025 price-to-book ratio of about 0.5 times, and considering factors such as its strong asset quality, it believes the value is undervalued. Looking ahead, Bank of China International still believes that ICBC will report positive profit growth in the fourth quarter of 2025 amid strong asset quality.