Citi released a research report pointing out that it raised its profit forecast for Postal Savings Bank of China (01658.HK) from 5% to 9% annually between this year and 2026, reflecting a potential decrease of 5 and 10 baz puan in deposit agent fees in the next two years. Citi slightly increased its valuation basis for Postal Savings Bank of China and predicted that the market-to-book ratio will increase to 0.72 times next year, reflecting reduced operating expenses after the potential decrease in deposit agent fees. Consequently, the target price for Postal Savings Bank of China was raised from HKD 4.69 to HKD 5.42, and a positive catalyst observation for the next 30 days was initiated.
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Citigroup: Post office storage bank's target price increased to HKD 5.42, reflecting the potential reduction of deposit agency fees
Citi released a research report pointing out that it raised its profit forecast for Postal Savings Bank of China (01658.HK) from 5% to 9% annually between this year and 2026, reflecting a potential decrease of 5 and 10 baz puan in deposit agent fees in the next two years. Citi slightly increased its valuation basis for Postal Savings Bank of China and predicted that the market-to-book ratio will increase to 0.72 times next year, reflecting reduced operating expenses after the potential decrease in deposit agent fees. Consequently, the target price for Postal Savings Bank of China was raised from HKD 4.69 to HKD 5.42, and a positive catalyst observation for the next 30 days was initiated.