Bank of America Securities: Raised BOC HONG KONG (02388) target price to 40 Hong Kong dollars, maintaining a "neutral" rating.

Bank of America Securities released a research report stating that BOC HONG KONG (02388) saw a year-on-year increase in net profit of 4.9%, which was 2.3% higher than the bank's forecast. BOC HONG KONG's core profit increased by 9.4% year-on-year, exceeding Bank of America Securities' expectation by 2.2%. BOC HONG KONG's return on equity (ROE) slightly decreased by 0.1 percentage points to 11.5%. The dividend payout ratio increased by 1 percentage point to 56% year-on-year, in line with Bank of America Securities' expectations. Bank of America Securities raised BOC HONG KONG's profit forecast for 2026 to 2027 by 5% to 6%, and the target price was raised from HK$38.5 to HK$40. Considering the uncertainty of macroeconomic growth and provisioning, the attractiveness of dividend yield is relatively low, maintaining a "neutral" rating.