Hang Seng Bank 0011

[winston]

TP of 3.9x PB ??

Not vested. From Phillips:-


Valuation

After earning revision, HSB's 2010E ROE estimate rises to 23.7%, we believe a higher valuation can be supported by the expectation of NIM widening.

We hence set our target 2010E P/B ratio at 3.9x which is 6% above the mean and raise our 12-month target price for HSB to HK$128 from HK$119. We reiterate our “BUY” rating on HSB.


Key Risks

- NIM narrower than expected
- Lower than expected fees income

[winston]

Not vested. From Phillips:-

Valuation

In the aspect of valuation, the current PB ratio of company is close to the average PB ratio of last ten years plus one standard deviation.

In the past, the company's PB ratio rose through the average PB ratio of last ten years plus one standard deviation during 2007 and the first half year in 2008 which were a bullish period.

We believe that the room for company's stock price increase is limited. We expect that the PB ratio of company will decline to 3.5 times next year.

The estimated earning per share and dividend per share in 2010 are HK$ 7.66 and HK$ 5.40 respectively.

And the 2010 estimated PE ratio is 17.4 times. According to the forecast, the price target in 12 months is HK$ 133.20. “HOLD” rating is given.

[winston]

not vested

HANG SENG BANK (00011.HK) Tumbles ~3% in PM, Dipping Below $100; Interim NP Slightly Rises 0.7%

HANG SENG BANK (00011.HK) logged a net profit of $9.893 billion in 1H24, rising 0.7% and higher than market expectations.

The lender declared a second interim dividend of $1.2, in line with market expectations.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Bad debts weigh on Hang Seng

by Melody Chen

First-half net profit at Hang Seng Bank (0011) inched up less than 1 percent to HK$9.89 billion from a year ago despite lower provisions and higher interest rates.

The bank also lifted its second interim dividend by 9 percent to HK$1.20 per share, bringing the first-half distribution to HK$2.40.

Net interest margins widened by 20 basis points to 2.29 percent as net interest income rose by 2 percent to HK$15.48 billion, up from HK$15.19 billion.

Bad loans hit 5.32 percent due to rising interest rate pressure on commercial real estate borrowers, but collateral levels ensured a stable financial performance.

Its shares slid 5.75 percent yesterday, closing at HK$95.85.

With the impact of rate cuts, the net interest margin for the year is expected to be slightly lower than last year's, says chief financial officer Saw Say Pin.

The HK$3 billion share buyback announced in the second quarter is projected to be completed next month, and the bank will consider all options for returning surplus capital to shareholders, including repurchase and raising dividends.

Source: The Standard

https://www.thestandard.com.hk/section- ... -Hang-Seng

[winston]

Hang Seng Bank (11 HK) - Asset quality in focus

HK banks cut prime rate by 25bps in September following the Fed rate cut.

Given that HK mortgage rate have hit the prime cap, a 25bps cut in prime rate should lead to a corresponding 25bps cut in the mortgage rate.

The impact on HSB should be more or less neutral.

Share price of HSB has risen 6% year-to-date, underperforming Hang Seng Index and BOCHK (2388 HK) by 8-11ppt.

While HSB announced a share buyback in April, its valuation remains relatively less attractive when compared with its domestic peers (i.e. BOCHK 2388 HK).

Also, HSB’s higher exposure to mainland China real estate and HK real estate exposure among its peers remains as a concern we believe asset quality concerns have shifted toward HK CRE from China CRE.

Within HK banks, we prefer HK international banks as they should benefit from fee and loan growth outside of HK and Mainland China.

We fine tune our FV estimate to HKD114.00 by rolling over estimates and applying the same valuation multiple of 1.3x forward price-to-book (P/B) which is at -0.75 s.d. to historical average. BUY.

Source: OCBC

[winston]

not vested

<Research>Citi: HANG SENG BANK (00011.HK) Interim Credit Cost Below Forecast; HK Commercial Property NPL Ratio Hikes to 20%

HANG SENG BANK (00011.HK) 's 1H25 net profit amounted to $6.3 billion, down 22% HoH and 35% YoY, Citi Research issued a research report saying.

Operating profit was $8.5 billion, down 16% HoH and 25% YoY, 14% below consensus expectation, mainly due to increased impairments.

The main adverse factors in HANG SENG BANK's results were decline in net interest income and higher-than-expected credit costs, according to the report.

The non-performing loans (NPL) ratio for Hong Kong commercial real estate increased by 5 ppts HoH to 20%.

Related News: M Stanley: HANG SENG BANK's Interim NP Misses as Dragged by High Credit Impairment Provisions

Higher-than-expected credit costs might bring short-term uncertainty for HANG SENG BANK, Citi Research added.

The $3 billion share buyback will be welcomed by the market, but key focus may be on the outlook for credit costs.

Therefore, the broker kept rating at Buy on HANG SENG BANK, with a target price of $135.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

HSBC offers to privatise Hang Seng Bank via scheme of arrangement at HK$155 per share
https://www.theedgesingapore.com/news/m ... k155-share