CICC: Raises China Merchants Bank (03968) H-share target price to HK$70.8, maintains "Outperform" rating

CICC released a research report stating that it has raised the H-share target price of China Merchants Bank (03968) to HK$70.8 and maintained an "Outperform" rating. The bank believes that amid macroeconomic fluctuations and a low interest rate environment, China Merchants Bank's third-quarter results demonstrated resilience, with quarterly return on equity gradually stabilizing and revenue and profit growth accelerating to levels comparable with large banks. CICC has raised its 2026 revenue and profit attributable to shareholders forecasts for China Merchants Bank by 1.4% and 1.7%, respectively, to RMB351.9 billion and RMB153.7 billion; and its 2027 revenue and profit attributable to shareholders forecasts by 1.4% and 3.5%, respectively, to RMB366.1 billion and RMB160.2 billion, mainly reflecting the company's third-quarter net interest margin slightly beating expectations and achieving quarter-on-quarter improvement.