Citigroup: Gives China Construction Bank Corporation (00939) a "Buy" rating with attractive valuation.

Citi released a research report stating that China Construction Bank Corporation (00939) saw a 13% year-on-year increase in pre-provision operating profit (PPOP) in the first quarter of this year, with growth accelerating from 5% in the fourth quarter of last year. This was due to the rebound in net interest margin, strong trading income, good fee income, and improvement in cost-to-income ratio (CIR). Citi believes that CCB's first-quarter performance exceeded expectations, with profit growth meeting expectations, ranking second and third among large banks. The significant rebound in CCB's net interest margin is encouraging, and Citi believes its valuation is attractive. CCB's H shares are given a "buy" rating with a target price of HK$9.88.