Bank of America Securities: Raises target price of China Merchants Bank (03968.HK) to HK$45.5, reiterating the "Underperform" rating.

According to the Zhtng Finance APP, Bank of America Securities released a research report stating that China Merchants Bank (03968.HK) saw a 2.1% year-on-year decline in net profit to 37.3 billion yuan in the first quarter, with pre-provision profit dropping 4.2% year-on-year, showing a negative performance. Net profit and pre-provision profit reached 24.6% and 25.7% of the full-year forecast respectively, roughly meeting expectations. Bank of America maintains its profit forecast unchanged, considering the clarification of capital injection into state-owned banks and the possibility that the trade tensions may have peaked. The bank has lowered its cost-to-income ratio forecast by 50 basis points to 14%, raised its H-share target price by about 5% to 45.5 Hong Kong dollars, and reiterated its "underperform" rating.