FY20 net profit was flat yoy, a marked change from 1H20’s 17% fall. This marks a return to the flattish to low-single digit growth of FY14-FY19 (Fig 2). Investors should note that since FY16, BOC has never cut its DPS (Fig 4), with FY20 DPS up 3% yoy. Stricter NPL recognition drove 2H20’s NPL ratio increase hoh, as both special mention loan and overdue loan ratio metrics fell hoh. Reiterate Add rating. TP raised by 3% to Rmb3.80, mainly driven by a more positive asset quality outlook within our stress-test adjusted GGM.