Goldman Sachs Forecasts CM BANK to Outperform Peers in Profit Growth This Year, Sets Target at HK$53.41

Stock News
Feb 12

Goldman Sachs has released a research report indicating that CM BANK's recent stock price weakness reflects its weak fourth-quarter 2025 performance and a relatively conservative profit outlook for 2026. The bank's A-shares and H-shares have fallen 5% and 4% year-to-date, respectively, and have retreated 8% and 6% from their three-month highs. Goldman Sachs has set target prices of 54.68 yuan for the A-shares and HK$53.41 for the H-shares. However, the report suggests the market is underestimating CM BANK's profit upside. Key points of divergence include expectations for a smaller increase in credit costs, ongoing digestion of risks related to mortgages, shadow banking, and real estate credit without the need for significant additional provisions, and manageable provision requirements for retail and corporate loans. Goldman Sachs expects these factors to enable CM BANK to achieve an 8% year-on-year profit growth in 2026, surpassing the average 3% growth projected for the big four state-owned banks.

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