An analysis report from Bank of America Securities indicates that China Merchants Bank's first-quarter performance was largely in line with expectations. Pre-provision profits grew by 4.5% year-on-year, showing improvement compared to the 1.6% decline recorded in the 2025 fiscal year. Pre-provision profits and net profit for the quarter accounted for 26.7% and 25% of the bank's full-year forecasts, respectively, which is broadly consistent with projections. The core tier 1 capital adequacy ratio remained flat quarter-on-quarter at 14.1%, while the return on equity decreased by 0.7 percentage points year-on-year to 13.5%. The bank's profit forecasts remain unchanged. Considering that China Merchants Bank's growth prospects are similar to those of large state-owned banks, but its valuation is significantly higher and its dividend yield is lower, an "Underperform" rating has been maintained for both its H-shares and A-shares. The target price for H-shares is set at HK$49.8, and for A-shares at RMB 43.28.