Equity Analysis /
China

CN : China Minsheng Bank-A - Going against the flow

    Michael Chang
    Michael Chang

    Equity Research Analyst, Banks and Insurance

    Follow
    CGS-CIMB
    31 March 2021
    Published byCGS-CIMB

    Unlike the other banks we cover, MSB’s net profits defied the recovery trend, with 4Q20 swinging to a loss, FY20 down 42% yoy and 2H20 down 79% yoy. MSB-A had been our least preferred A-share bank for more than a year, and we see little in the FY20 results to change this view. Reiterate Reduce. TP cut by 20% to Rmb4.10 on lowered EPS estimates, offset partly by valuation rollforward and lower NPLs within our GGM.