BOCI Securities: Slightly lowers target price of Postal Savings Bank Of China (01658) to 6.62 Hong Kong dollars, maintains "buy" rating.

released a research report stating that the current stock valuation of Postal Savings Bank Of China (01658) is relatively low, with a price corresponding to a forecasted P/B ratio of 0.48 times in 2026. However, due to its excellent asset quality and stable dividend payout ratio, it should receive a higher P/B ratio valuation. Based on a forecasted P/B ratio of about 0.65 times in 2026, the target price is slightly lowered from HK$6.84 to HK$6.62, while maintaining a "buy" rating. The net profit attributable to shareholders for the fourth quarter of 2025 of Postal Savings Bank Of China increased by 1.7% year-on-year, slightly faster than the 1.2% growth in the third quarter. The bank believes that this was mainly driven by growth in operating income, a slowdown in the decline of net interest margin, and reduced operating expenses. As a result, the full-year net profit attributable to shareholders increased by 1.1% year-on-year, with operating income also increasing by 1.9% year-on-year. Although the non-performing loan ratio increased in the fourth quarter, it remains at the lowest level among its peers, and the provision coverage ratio is at a high level.