We are surprised at how few investors are aware that CMB became China’s second largest bank by market cap in early 2021, just behind ICBC. We think with the return to normality of double-digit profit growth and rising ROEs for CMB, CMB’s P/BVs can easily continue to rise well past FY23F. Also, if the experience of the last six years is repeatable, CMB could overtake ICBC to become China’s largest bank by market cap in Sep 22. CMB remains our sector top pick. Reiterate Add with a TP of HK$75.50.
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