Citigroup lowers Hang Seng Bank's target price to 21.1 Hong Kong dollars, with a difficult outlook for sales and profits in the second half of the year.
A Citigroup report released on November 26th stated that, recently, they had a meeting with the management of Hang An (01044.HK) and believed that due to intense price competition, operational deleveraging, and decreased government subsidies, the company's sales and profit margin in the second half of the year will be more challenging than in the first half. However, the management maintains the fixed annual dividend at RMB 1.4 per share, implying a dividend yield of 6.9%, which is an attractive level. Citigroup has lowered its net profit forecast for Hang An from 2024 to 2026 by 15% to 17% to reflect weakening sales and profit prospects in the industry downturn and intense price competition. The target price has been lowered from HKD 25 to HKD 21.1, equivalent to a forecasted P/E ratio of 9 times next year, and the stock is maintained at a neutral rating.
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Citigroup lowers Hang Seng Bank's target price to 21.1 Hong Kong dollars, with a difficult outlook for sales and profits in the second half of the year.
A Citigroup report released on November 26th stated that, recently, they had a meeting with the management of Hang An (01044.HK) and believed that due to intense price competition, operational deleveraging, and decreased government subsidies, the company's sales and profit margin in the second half of the year will be more challenging than in the first half. However, the management maintains the fixed annual dividend at RMB 1.4 per share, implying a dividend yield of 6.9%, which is an attractive level. Citigroup has lowered its net profit forecast for Hang An from 2024 to 2026 by 15% to 17% to reflect weakening sales and profit prospects in the industry downturn and intense price competition. The target price has been lowered from HKD 25 to HKD 21.1, equivalent to a forecasted P/E ratio of 9 times next year, and the stock is maintained at a neutral rating.