JP Morgan: Reiterate "Overweight" rating for STANCHART (02888) with a target price of HKD 148.

Morningstar released a research report stating that STANCHART(02888)'s second quarter pre-provision operating profit (PPoP) and profit before tax (PBT) exceeded expectations by 12% and 23% respectively, mainly due to non-interest income performance far exceeding expectations. The bank maintains a target price of 148 yuan for STANCHART and reiterates a "hold" rating. The bank points out that STANCHART remains its top pick, mainly because management has noted a good start to the group's third quarter, and has raised its total revenue expectations for the 2025 fiscal year to the lower end of the 5-7% range. The bank also expects the group's earnings per share for the 2025 to 2026 fiscal years to increase by a low single digit percentage, benefiting from slightly increased total revenue in 2025 and reduced provisions. In addition, with a strong Tier 1 capital adequacy ratio of 14.3%, STANCHART has announced a $1.3 billion stock buyback plan, a dividend of 12.3 cents per share, and a potential return of 8.1% over the next 12 months, ranking second in the financial industry in the Greater China region.