Huatai Securities raised the target price of BOC Hong Kong to HKD 45.59, as the interest margin stabilizes and enhances operational resilience

AASTOCKS
2025.10.30 09:35

Huatai Securities report indicates that BOC Hong Kong (02388.HK) saw a year-on-year increase of 6.3% in operating revenue for the first three quarters of this year, with the growth rate decreasing by 7 percentage points compared to the first half of this year; operating profit increased by 3.5% year-on-year, with the growth rate decreasing by 9.5 percentage points compared to the first half of this year. The board of directors announced that it will distribute the third interim dividend for the fiscal year 2025 on November 26, 2025 (Wednesday), at HKD 0.29 per share. The performance growth rate of BOC Hong Kong has marginally slowed down, mainly due to fluctuations in the growth of other non-interest income and increased provisioning.

Huatai Securities forecasts that BOC Hong Kong's price-to-book ratios for 2025 to 2027 will be 1.14 times, 1.08 times, and 1.02 times, respectively. Given the growth in BOC Hong Kong's loan scale and the consolidation of its Southeast Asian business, it should enjoy a certain valuation premium, assigning a target price-to-book ratio of 1.35 times for 2025, with the target price raised from HKD 42.18 to HKD 45.59, maintaining a "Buy" rating

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