JP Morgan: China Minsheng Banking Corp., Ltd (01988) rated "neutral" with a target price of 3.9 Hong Kong dollars.

JPMorgan Chase released a research report stating that China Minsheng Banking Corp., Ltd. (01988) has been given a "neutral" rating with a target price of 3.9 Hong Kong dollars. The bank believes that the impairment charges of China Minsheng Banking Corp., Ltd. exceeded expectations, and the continuing concerns about asset quality may put pressure on profit prospects. The bank also expects the stock price to face a slight negative reaction. The report mentions that the performance of China Minsheng Banking Corp., Ltd. in the first quarter of this year was below expectations, with a 3% year-on-year increase in revenue, a 10% year-on-year decline in net profit, mainly due to impairment provisions exceeding expectations by 13%, offset by positive operating trends such as rebound in net interest margin and steady growth in fee income. Non-fee income was also weaker than expected, dragging down total non-interest income by 2% lower than the bank's expectations.