Citi: Raises BANK OF E ASIA (00023) rating to "buy" with an attractive valuation target price of HK$16.

Citibank released a research report stating that looking ahead, BANK OF E ASIA (00023) basic operational performance may exceed market expectations, the valuation is attractive as well. They were recently included in the Hang Seng Index, which means they may be included in the Hong Kong Stock Connect in the future. Therefore, they have upgraded their investment rating from "Neutral" to "Buy" and raised the target price from HK$14.9 to HK$16. At the performance meeting, BANK OF E ASIA announced their latest strategic guidance, aiming to increase the Return on Equity (ROE) to 7% by 2028, compared to 3.1% in 2025 and the market's expectation of 5.1%. The main drivers include the expectation of stable net interest income; a forecasted annual growth rate of 14% for non-interest income from 2025 to 2028; a cost increase of less than 5% annually; and the possibility of credit costs lowering to below 60 basis points by 2028. Citibank pointed out that East Asia's dividend target for 2028 is double that of 2025, meaning that by 2028, the dividends per share could reach around HK$1.2. They predict that the ROE will reach 6% by then, slightly below management's target but significantly higher than the market's general prediction of 5.1%.