BOCI Securities released a research report stating that ABC (01288) reported net interest margins of 1.3% and 1.32% for the first three quarters and the first half of 2025, respectively, down 12 and 10 basis points from the end of 2024. The bank noted an improvement in asset quality in Q3 2025 and attractive valuations, prompting an upward revision of the H-share target price from HK$6.09 to HK$6.95, equivalent to 0.8x projected P/B for the year. The "Buy" rating was maintained.

BOCI highlighted that ABC achieved positive profit growth in both Q3 and the first three quarters of 2025, demonstrating strong competitiveness amid a challenging economic environment. Net profit in Q3 2025 rose 3.7% year-on-year, accelerating from 3.2% in Q2 and 2.2% in Q1.

The report emphasized ABC's solid asset quality, robust shareholder returns, and attractive dividend yield, suggesting the stock is undervalued. BOCI forecasts an average return on equity (ROE) of 10.1% for 2025.