Lyon: CMB's preliminary performance last year may elicit a positive market response

Golden Ten Data on January 15, Lyon issued a report pointing out that China Merchants Bank (03968. HK) is the first Chinese bank to announce its preliminary results last year, which is stable and the market is likely to react positively. CLSA believes investors appreciate CMB's track record of stability and reliability, and appreciates its efforts to achieve positive earnings. Based on earnings per share of RMB5.66 and a dividend payout ratio of 35%, the dividend yield of CMB A shares is 5%, while that of H shares is approximately 5.4%. The bank believes that CMB's A-shares are more attractive. Despite a number of uncertainties in 2025, the bank forecasts a 3.5% earnings rise. Maintain "Outperform" rating. The target price for China Merchants Bank's H shares is HK$43.8.