UBS has released a research report upgrading its rating on Minsheng Bank (01988) from "Neutral" to "Buy." The upgrade is based on the bank's deep valuation discount, with a projected 2026 price-to-book ratio of just 0.22 times, compared to 0.47 times for China CITIC Bank (00998). Additionally, UBS anticipates a profit inflection point starting in 2026, driven by revenue improvements and the substantial release of balance sheet risks. The target price has been slightly adjusted downward from HK$5.43 to HK$5.3.

The market currently prices Minsheng Bank under the assumption that profit pressures will persist. However, UBS analysis suggests that the bank's provision risks may have already peaked. With profits expected to reach equilibrium in 2026 and turn to positive growth from 2027 onward, the bank believes Minsheng Bank's potential for valuation re-rating outweighs recent weaknesses in return on equity.

UBS has preemptively raised its earnings per share forecasts for Minsheng Bank for 2026–2029 by 5–6%. At the same time, due to short-term market volatility, the bank has slightly increased its cost of equity assumption to 11.5%.