Core Viewpoint - The new strategic direction of Bank of East Asia (00023) is clear, with a reduction in credit costs and an increase in non-interest income assumptions, leading to an upward revision of net profit forecasts for 2026E/2027E by 42.5%/49.0% to HKD 5 billion/HKD 5.7 billion [1] Group 1: Financial Performance - The company's 2025 performance was below expectations, with revenue of HKD 21 billion, a year-on-year increase of 0.2%, and net profit of HKD 3.2 billion, a year-on-year decrease of 20.1% [2] - The company's credit cost for 2025 was 1.04%, with a slight year-on-year increase of 1 basis point, and a second half increase of 19 basis points to 1.14% [4] - The net interest income for 2025 decreased by 7.3% due to a decline in HIBOR and LPR, resulting in a narrowing of the interest margin by 19 basis points to 1.90% [5] Group 2: Strategic Goals - The company aims to improve ROE to 7% by 2028, with a goal to double shareholder returns [3] - The strategy includes improving asset quality by resolving historical issues in commercial real estate (CRE) and reducing credit costs to below 60 basis points [3] - The company plans to achieve a compound annual growth rate (CAGR) of approximately 14% in non-interest income over the next three years, focusing on wealth management for affluent clients and leveraging cross-border business advantages [3] Group 3: Asset Management - The company is actively disposing of non-performing assets related to real estate, with 77% of credit costs allocated to CRE-related exposures [4] - By the end of 2025, the company's exposure to mainland property developers accounted for 2.7% of total loans, a decrease of 2.2% year-on-year, while exposure to Hong Kong property developers accounted for 9.9%, a decrease of 1.6% [4] Group 4: Non-Interest Income - Non-interest income for 2025 increased by 28%, with fee income rising by 15% and contributions from wealth management and corporate fees showing double-digit growth [6] - Other non-interest income grew by 50%, primarily driven by client trading and market-making activities, which are considered stable fee-like revenues [6]

智通财经APP获悉，中金发布研报称，东亚银行(00023)新战略思路清晰，下调信用成本、上调非息收入 相关假设，上调2026E/2027E归母净利润预测42.5%/49.0%至50亿/57亿港元；上调2026E/2027E营业收入 预测6.3%/7.0%至212亿/219亿港元。公司交易于0.4x/0.4x 2026E/2027E P/B。该行上调目标价28%至 18.03港元，对应0.5x/0.5x 2026E/2027E P/B与27.5%的上行空间，维持中性评级。 中金主要观点如下： 2025年业绩低于该行预期 公司公布2025年业绩：营业收入210亿港元，YoY +0.2%；归母普通股净利润32亿港元，YoY -20.1%。 公司业绩低于该行预期，主要由于内地联营企业与香港自有地产减值的一次性因素影响，排除上述因 素，公司税前利润YoY -5.6%。 新三年战略：至2028年ROE提升至7%、股东回报翻倍 公司2025年ROE 3.1%，其ROE水平长期受经营效率与信用成本压制，针对此，公司2026~2028年具体战 略目标与指引包括： 3. 金融科技带动成本节约。未来三年累计成本增长低于5%。 持续 ...

Core Viewpoint - East Asia Bank announced a projected net profit of HKD 3.5 billion for the full year 2025, with an estimate of HKD 4.01 billion [1] Financial Performance - The bank's net interest income for the year is projected to be HKD 15.32 billion, exceeding the estimate of HKD 15.11 billion [1] - The non-performing loan ratio is expected to be 2.69%, better than the estimated 2.87% [1] Capital Adequacy - The common equity tier 1 capital ratio is reported at 24.7%, surpassing the estimated 23.1% [1] - The bank declared an interim dividend of HKD 0.22 per share for the year [1]

Core Viewpoint - The commercial real estate (CRE) pressure continues to negatively impact the asset quality of loans, leading to a decline in East Asia Bank's profit performance for the year [1] Financial Performance - East Asia Bank reported a net profit attributable to shareholders of HKD 3.501 billion for the year ending December, a decrease of 24.02% year-on-year, falling below market expectations [1] - Net interest income decreased by 7.3% to HKD 15.322 billion, with net interest margin narrowing by 19 basis points from 2.09% to 1.9% due to falling interest rates [1] - Non-interest income increased by 28.02% to HKD 5.697 billion, driven by a 14.8% rise in service fees and commissions to HKD 3.216 billion, attributed to growth in investment activities and third-party policy sales [1] - The net profit from trading and financial instrument revaluation rose by 44.9%, benefiting from active client trading, which boosted revenues from structured products and foreign exchange [1] Loan Quality and Provisions - Financial instrument impairment losses increased by 2.6% to HKD 5.642 billion, with provisions related to commercial real estate accounting for 77% of total loan loss provisions [2] - The bank has reduced its commercial real estate loan exposure, with real estate now comprising 18% of the overall loan portfolio, and Hong Kong commercial real estate exposure dropping to approximately 9.9% of total loans [2] - The bank recorded an increase in investment property impairment of HKD 578 million to HKD 723 million, and losses from joint ventures and associates amounted to HKD 305 million [2] - The bank aims to further reduce commercial real estate-related loans to 15% of the overall loan portfolio within the next two to three years [2] Dividend and Capital Position - East Asia Bank announced a second interim dividend of HKD 0.22 per share, a significant decrease of 42.1% year-on-year, influenced by one-off factors and non-recurring income [3] - The bank's common equity tier 1 capital ratio increased by 1.0 percentage points to 24.7% [3] - The operating profit before provisions was HKD 5.8 billion, showing a semi-annual growth of 6% and a year-on-year growth of 1%, exceeding market expectations by 15% due to strong net interest income and trading income [3]

Group 1: Hang Seng Index - Ningde Times (300750) (03750), Luoyang Molybdenum (603993) (03993), and Laopu Gold (06181) will be included in the Hang Seng Index, increasing the number of constituent stocks from 88 to 90 [1][2]. Group 2: Hang Seng China Enterprises Index - Beike-W (02423) and Horizon Robotics-W (09660) will be added to the Hang Seng China Enterprises Index, while China Resources Beer (00291) will be removed, maintaining the total number of constituent stocks at 50 [5]. Group 3: Hang Seng Composite Index - East Asia Bank (00023) and Guofu Quantum (00290) will be included in the Hang Seng Composite Index, with the number of constituent stocks increasing from 507 to 532 [9][10].

Group 1 - The Hang Seng Index Company announced the quarterly review results, increasing the number of constituent stocks from 88 to 90, with CATL, Luoyang Molybdenum, and Laopu Gold being added, while Zhongsheng Group was removed [1][3] - CATL's H-shares closed at HKD 517.5, down 1.99%; Luoyang Molybdenum's H-shares closed at HKD 21.72, down 6.94%; Laopu Gold closed at HKD 738.5, down 3.97% [3] - The Hang Seng China Enterprises Index will maintain 50 constituent stocks, adding Beike-W and Horizon Robotics-W, while removing China Resources Beer and Mengniu Dairy [3][4] Group 2 - The Hang Seng Composite Index will add 53 stocks, including East Asia Bank, and remove 28 stocks, increasing the total number of constituent stocks from 507 to 532 [7] - The Hang Seng Technology Index will remain unchanged with 30 constituent stocks [7]

Group 1 - The Hang Seng Index Company announced the inclusion of Bank of East Asia (00023) in the Hang Seng Composite Index, effective March 9, 2026, following a quarterly review [1] - Bank of East Asia reported a decrease in interest income to HKD 32.968 billion, down 17.18% year-on-year, and a drop in profit attributable to shareholders to HKD 3.501 billion, down 24.02% year-on-year, with basic earnings per share at HKD 1.22 [1] - The core business of the group remains stable, with operating profit before provisions holding steady at HKD 11.2 billion, and non-interest income growing by 28%, indicating successful strategies in business diversification and sustainable growth [1] Group 2 - The company continues to prudently make provisions for its exposure to commercial real estate, with 77% of this year's provisions related to commercial properties in Hong Kong and mainland China [2] - The valuation of the company's investment property portfolio was adjusted downwards by HKD 0.723 billion [2] - The group recorded a loss of HKD 0.305 billion from joint ventures and associates, primarily from a joint venture in mainland China [2]

Group 1 - The Hang Seng Index Company announced the quarterly review results for the Hang Seng Index series, effective from March 9, 2026, after market close on March 6, 2026 [1] - The Hang Seng Index will add three stocks: Contemporary Amperex Technology Co., Limited (03750), Luoyang Molybdenum Co., Ltd. (03993), and Laopuhuang Co., Ltd. (06181), while removing Zhongsheng Group Holdings Limited (00881), increasing the number of constituent stocks from 88 to 90 [1] - Laopuhuang has seen a significant price increase, with a cumulative rise of nearly 20% since the beginning of 2026 [1] Group 2 - The Hang Seng China Enterprises Index will maintain 50 constituent stocks, adding Beike-W (02423) and Horizon Robotics-W (09660), while removing China Resources Beer (00291) and Mengniu Dairy (02319) [2] - The Hang Seng Composite Index will add 53 stocks, including Bank of East Asia (00023), and remove 28 stocks, including Shui On Land (00272), increasing the number of constituent stocks from 507 to 532 [5] - The Hang Seng Technology Index will not change, maintaining 30 constituent stocks [6] Group 3 - The total assets under management for products tracking the Hang Seng Index series is approximately $117.7 billion as of December 2025 [6] - The adjustments in index constituents may trigger passive fund rebalancing, potentially leading to increased trading volume for related stocks as the effective date approaches [6] - The inclusion of new economy enterprises in sectors like renewable energy, new consumption, and biotechnology is expected to enhance the growth potential and investment attractiveness of the indices, reducing the weight of traditional industries [6]

Core Viewpoint - The Hong Kong stock market is undergoing significant adjustments in its major indices, with changes in constituent stocks for the Hang Seng Index and other related indices [2][4][8]. Group 1: Hang Seng Index Adjustments - The Hang Seng Index will increase its constituent stocks from 88 to 90, adding Ningde Times (03750), Luoyang Molybdenum (03993), and Laopu Gold (06181), while removing Zhongsheng Group (00881) [2][4]. - Laopu Gold has shown a strong performance, with a cumulative increase of nearly 20% since the beginning of 2026 [4]. Group 2: Hang Seng China Enterprises Index Changes - The Hang Seng China Enterprises Index will maintain 50 constituent stocks, adding Beike-W (02423) and Horizon Robotics-W (09660), while removing China Resources Beer (00291) and Mengniu Dairy (02319) [6]. Group 3: Hang Seng Composite Index Changes - The Hang Seng Composite Index will add 53 stocks, including East Asia Bank (00023), and remove 28 stocks, increasing its total from 507 to 532 [8]. - The Hang Seng Technology Index will remain unchanged at 30 constituent stocks [8]. Group 4: Market Performance Analysis - Since the beginning of 2026, the Hang Seng Index has risen by 3.65%, while the Hang Seng Technology Index has decreased by 2.82% [10]. - In 2025, both indices saw increases, with the Hang Seng Index up by 27.77% and the Hang Seng Technology Index up by 23.45% [10]. - Among the 88 constituent stocks of the Hang Seng Index, 69 have risen, 18 have fallen, and 1 has remained flat since the end of 2025 [10]. Group 5: Notable Stock Performances - The top performers since the beginning of 2026 include New World Development (41.18%), Techtronic Industries (31.92%), and Pop Mart (31.81%) [11]. - Conversely, the worst performers include Trip.com (-24.22%), Meituan (-20.47%), and NetEase (-13.47%) [11].

Core Viewpoint - The Hang Seng Index Company announced the quarterly review results for the Hang Seng Index series, with Bank of East Asia being included in the Hang Seng Composite Index, effective March 9, 2026, which may lead to its inclusion in the Stock Connect program due to meeting various criteria [1][2] Group 1: Financial Performance - For the year ending December 31, 2025, Bank of East Asia reported interest income of HKD 32.968 billion, a decrease of 17.18% year-on-year [1] - The bank's profit attributable to shareholders was HKD 3.501 billion, down 24.02% year-on-year, with basic earnings per share at HKD 1.22 [1] - The core business remains robust, with operating profit before provisions stable at HKD 11.2 billion, and non-interest income grew by 28%, indicating successful strategies in business diversification and sustainable growth [1] Group 2: Real Estate Exposure - The company continues to prudently provision for its commercial real estate exposure, with 77% of this year's provisions related to commercial properties in Hong Kong and mainland China [2] - The valuation of the company's investment property portfolio was adjusted down by HKD 0.723 billion [2] - The group recorded a loss of HKD 0.305 billion from joint ventures and associates, primarily from a joint venture in mainland China [2]