JPMorgan: Overweight rating on Agricultural Bank of China (01288), target price HK$7.35

JPMorgan released a research report stating that after the restriction period ended, it adjusted its rating on Agricultural Bank of China (01288) from "Not Rated" to "Overweight" and gave a target price of HK$7.35. The bank expects Agricultural Bank of China's earnings per share to grow by 5.9%, 5.2%, and 5.4% in 2026, 2027, and 2028, respectively. JPMorgan pointed out that Agricultural Bank of China's asset quality has improved, and its non-performing loan provision coverage ratio is the highest among the four major mainland banks, providing more buffer space for future earnings. In addition, the bank has relatively low overseas exposure and is less affected by recession risks in overseas markets. However, Agricultural Bank of China's core tier-1 capital adequacy ratio is relatively low, and its risk-weighted asset growth is relatively high.