BOCI Securities: Lowering Industrial and Commercial Bank's target price to HK$6.25, maintaining a "buy" rating

On September 3, Bank of China International issued a report, referring to the Industrial and Commercial Bank of China (01398. HK) net profit for the first half of the year fell by 1.9% year-on-year, roughly in line with the bank’s expectations. According to the report, ICBC’s asset quality remained stable in the first half of the year, with a net interest margin of 1.43% in the first half of the year, down 18 basis points from the end of last year. According to the report, ICBC’s current valuation is equivalent to 0.4 times the forecast price-to-book ratio this year, and the dividend yield may be 7.5% in 2024, believing that ICBC is undervalued. BOCI lowered its target price on ICBC’s H shares to HK$6.25 and maintained a “buy” rating.