CICC International: Raised Postal Savings Bank Of China (01658) target price to HKD 6.84, continued positive profit growth in the last quarter.

China International Capital Corporation released a research report stating that Postal Savings Bank Of China (01658) is expected to maintain positive profit growth in the third quarter of 2025, with a year-on-year increase in net profit attributable to shareholders of 1.2% in the third quarter, down from 4.8% in the second quarter. The asset quality of Postal Savings Bank Of China remains excellent in the first three quarters of 2025. The net interest margin of Postal Savings Bank Of China was 1.68% at the end of September 2025 and 1.7% at the end of June 2025, a decrease of 19 and 17 basis points respectively from the end of 2024. China International Capital Corporation stated that the asset quality of Postal Savings Bank Of China remains robust and valuation remains attractive; the target price for H shares has been raised from HKD 6.35 to HKD 6.84, equivalent to a forecasted market-to-book ratio of 0.7 times this year, maintaining a "buy" rating.