Citigroup: CQRC BANK (03618) has been added to the 90-day positive catalyst observation list, with a "buy" rating.

Citigroup released a research report stating that the target price for CQRC BANK (03618) is HK$7.53, maintaining a "buy" rating and including CQRC BANK in the 90-day positive catalyst watchlist. It is believed that its upcoming 2025 fourth quarter results (expected to be announced on March 25) could likely exceed market expectations. Citigroup expects a 16% year-on-year increase in the bank's quarterly profit (implying a 5% growth in annual profit compared to last year, about 1% higher than market consensus forecasts), supported by strong loan growth and stable net interest margins. In addition, Citigroup expects Agricultural Bank of China's revenue and profit growth to accelerate to a 5% and 10% annual increase, primarily driven by strong growth in corporate loans; stable net interest margins; stronger bank insurance, wealth management, and precious metal-related fee income; and factors driving expected revenue doubling year-on-year.