Core Viewpoint - Postal Savings Bank of China (601658) (01658) maintains positive profit growth outlook for Q3 2025, with a year-on-year increase in net profit attributable to shareholders of 1.2%, a slowdown from 4.8% in Q2 2025 [1] Financial Performance - In Q3 2025, the net profit attributable to shareholders increased by 1.2% year-on-year, showing a deceleration compared to the 4.8% growth in Q2 2025 [1] - The bank's asset quality remains strong, with net interest margins at 1.68% as of September 2025, down from 1.7% at the end of June 2025, and a decline of 19 basis points and 17 basis points compared to the end of 2024 respectively [1] Valuation and Rating - China International Capital Corporation (CICC) indicates that the asset quality of Postal Savings Bank remains robust and the valuation is still attractive [1] - The target price for H-shares has been raised from HKD 6.35 to HKD 6.84, equivalent to a forecasted price-to-book ratio of 0.7 times for this year, maintaining a "Buy" rating [1]

Core Viewpoint - Xiamen Bank's stock price increased by over 5%, while other banks such as CITIC Bank, Shanghai Bank, Chongqing Bank, Industrial Bank, China Merchants Bank, Postal Savings Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China saw their stock prices rise by over 2% [1] Group 1 - Xiamen Bank experienced a significant stock price increase of more than 5% [1] - Several major banks, including CITIC Bank and Shanghai Bank, reported stock price increases exceeding 2% [1] - The overall positive trend in stock prices indicates a favorable market sentiment towards these banks [1]

Core Viewpoint - Postal Savings Bank of China (01658) maintains positive profit growth outlook for Q3 2025, with a year-on-year net profit increase of 1.2% in Q3, slowing from 4.8% in Q2 [1] Group 1: Financial Performance - The net profit attributable to shareholders for Q3 2025 increased by 1.2% year-on-year, showing a deceleration compared to the 4.8% growth in Q2 2025 [1] - The bank's asset quality remains excellent, with net interest margins at 1.68% as of September 2025, down from 1.7% at the end of June 2025, and a decrease of 19 basis points and 17 basis points compared to the end of 2024 respectively [1] Group 2: Valuation and Recommendations - CICC has raised the target price for Postal Savings Bank's H-shares from HKD 6.35 to HKD 6.84, which corresponds to a forecasted price-to-book ratio of 0.7 times for this year, indicating attractive valuation [1] - The bank's asset quality is described as robust, and the recommendation remains a "Buy" rating [1]

Core Viewpoint - The banking sector is experiencing a strong upward trend, with several banks showing significant stock price increases [1] Group 1: Stock Performance - Xiamen Bank has seen its stock price rise by over 5% [1] - Other banks including CITIC Bank, Chongqing Bank, Shanghai Bank, Industrial Bank, China Merchants Bank, Postal Savings Bank, Agricultural Bank, Industrial and Commercial Bank, and Jiangyin Bank have all increased by over 2% [1]

Group 1 - Postal Savings Bank of China (PSBC) shares increased by 2.08% on November 4, reaching 5.90 CNY per share, with a trading volume of 431 million CNY and a market capitalization of 708.56 billion CNY [1] - Year-to-date, PSBC's stock price has risen by 8.90%, with a 2.80% decline over the last five trading days, a 1.20% increase over the last 20 days, and a 2.43% increase over the last 60 days [1] - As of September 30, 2025, PSBC reported a net profit of 76.56 billion CNY, reflecting a year-on-year growth of 0.98% [3] Group 2 - PSBC's main business segments include personal banking (65.15% of revenue), corporate banking (22.71%), and funding operations (12.10%) [2] - The bank has distributed a total of 137.80 billion CNY in dividends since its A-share listing, with 77.40 billion CNY distributed over the last three years [4] - As of September 30, 2025, the number of PSBC shareholders decreased by 13.09% to 142,600, while the average circulating shares per person increased by 15.29% to 478,570 shares [3]

Core Insights - The report highlights that 44 brokerage firms have invested in 351 stocks, with a total holding value exceeding 66 billion yuan as of the end of Q3 [2][3] - High-end manufacturing and technology sectors are identified as popular investment directions for brokerages, reflecting a shift towards structural opportunities in the equity market [2][3] Brokerage Holdings Overview - The top 10 stocks held by brokerages by market value include Muyuan Foods, Guangqi Technology, and Cangge Mining, with holdings exceeding 1 billion yuan for several stocks [3][4] - The distribution of holdings indicates a strong focus on sectors such as machinery, pharmaceuticals, electronics, and basic chemicals, with the highest number of stocks in machinery equipment (35 stocks) and pharmaceuticals (28 stocks) [3][4] Trading Activity - Brokerages have entered 186 new stocks, with notable new positions including Postal Savings Bank and China Foreign Transport, each exceeding 30 million shares [4] - A total of 69 stocks saw increased holdings, particularly in the basic chemicals and transportation sectors, while 61 stocks were reduced, indicating a selective approach to portfolio management [5][4] Self-Operated Business Performance - Self-operated business remains the largest revenue contributor for brokerages, with a reported income of 186.857 billion yuan in the first three quarters, marking a 43.83% year-on-year increase [6][7] - Major brokerages like CITIC Securities and Guotai Junan reported significant growth in self-operated income, driven by a recovering equity market and strategic asset allocation [6][7] Market Trends and Analysis - Analysts note that the active trading environment and increased margin financing have positively impacted brokerage performance, with a significant rise in average daily trading volume [7] - The shift towards equity assets and the reduction in bond investments reflect a broader trend of rebalancing within the brokerage sector [7]

Core Points - The article highlights the challenges faced by elderly individuals in accessing banking services due to the digital divide, emphasizing the importance of warm and accessible service from financial institutions [1] - Postal Savings Bank's initiative to provide door-to-door services for elderly customers demonstrates its commitment to "elderly finance" and deep service for this demographic [4] Group 1 - The elderly customer faced a critical situation when her husband's bank card was locked, and they were unable to visit the bank due to health issues [1] - Postal Savings Bank staff quickly initiated a "green channel" and home service process to assist the elderly couple, showcasing their responsive customer service [2] - The successful completion of the password reset at the customer's home alleviated the couple's distress, highlighting the effectiveness of the bank's personalized service [2] Group 2 - The bank's home service not only resolved immediate banking needs but also illustrated a broader commitment to serving the elderly population with care and respect [4] - Staff provided thorough assistance during the home visit, ensuring that the elderly customer understood each step of the process, which reflects the bank's dedication to customer-centric service [4] - The ongoing focus on the financial service needs of the elderly will lead to continuous improvements in home service processes, reinforcing the bank's mission to deliver warmth and convenience to this demographic [4]

Group 1 - Postal Savings Bank of China (PSBC) emphasizes customer-centric services, as demonstrated by their response to a bedridden customer in Chengdu who needed urgent assistance with activating his social security card [1][3] - The bank has established a "special group customer ledger" to ensure that customer requests are addressed promptly, highlighting their commitment to continuous service [1] - PSBC is actively engaging with the community by providing financial education, particularly targeting vulnerable groups such as the elderly, to help them recognize and avoid financial scams [2][3] Group 2 - The bank's initiatives include on-site financial knowledge sessions in local communities, making financial education accessible and relatable to residents [2] - PSBC aims to enhance its service delivery by moving service points closer to customers and deepening financial knowledge dissemination [3] - The bank's approach is to provide timely, warm, and in-depth financial services to safeguard customers' financial well-being [3]

Core Insights - The collaboration between Postal Savings Bank of China Chengdu Branch and a provincial agricultural enterprise marks a significant step in agricultural transformation financing, providing a specialized loan of 12 million yuan to support the green and intelligent transformation of traditional agriculture [1][4]. Group 1: Agricultural Transformation Challenges - A leading mushroom cultivation company in Chengdu, with an annual output exceeding 15,000 tons, faces challenges due to outdated high-energy consumption facilities and rising production costs, necessitating a low-carbon transformation [2]. - The company struggles with financing pressures due to a lack of effective collateral, long technology investment cycles, and slow capital recovery, which has stalled its transformation efforts [2]. Group 2: Postal Savings Bank's Role - Postal Savings Bank of China Chengdu Branch, under the guidance of the People's Bank of China Sichuan Branch, conducted thorough research on the company's operational status and financing needs, tailoring a financial support plan for its transformation [3]. - The bank collaborated with a third-party environmental research center to conduct comprehensive carbon accounting, revealing high carbon emissions per unit of output due to inefficient traditional temperature control systems [3]. - A low-carbon transformation plan was developed, focusing on upgrading temperature control systems, mechanizing production lines, and utilizing waste resources, with a mechanism linking carbon intensity to loan interest rates to incentivize emissions reduction [3]. Group 3: Green Finance Outcomes - The 12 million yuan loan significantly alleviates the company's immediate financial pressures, facilitating the implementation of key transformation projects that will reduce energy consumption and carbon emissions while enhancing market competitiveness [4]. - This collaboration represents a solid step for Postal Savings Bank in the agricultural transformation finance pilot area, providing a replicable and innovative solution for the green and intelligent transformation of traditional agriculture [4]. - On a macro level, the partnership aligns with national "dual carbon" strategies and rural revitalization policies, contributing to the modernization of agriculture in Sichuan and serving as a model for other traditional agricultural entities [4]. Group 4: Future Directions - The collaboration exemplifies Postal Savings Bank's commitment to green finance, with plans to deepen the "finance + technology + industry" collaborative model to provide comprehensive financial services to more traditional agricultural entities [5]. - The bank aims to continue contributing to national "dual carbon" goals and rural revitalization strategies with innovative financial solutions [5].

Core Insights - The company reported stable performance with a slight increase in revenue and net profit for the first nine months of 2025, supported by rapid growth in non-interest income and reduced liability costs [1][2]. Financial Performance - For the period of January to September 2025, the company's operating revenue reached 265.08 billion yuan, a year-on-year increase of 1.82%, while net profit attributable to shareholders was 76.56 billion yuan, up 0.98% [1]. - The annualized ROE was 10.67%, a decrease of 1.12 percentage points compared to the previous year [1]. - In Q3 alone, revenue and net profit grew approximately 2.48% and 1.23% year-on-year, respectively [1]. Interest Income and Loan Growth - The net interest income for the first nine months of 2025 was 210.51 billion yuan, down 2.07% year-on-year, with a net interest margin of 1.68%, reflecting a decline of 19 basis points from last year [2]. - The average interest rate on interest-bearing liabilities fell to 1.22%, down 25 basis points year-on-year [2]. - Total loans increased by 8.33% compared to the beginning of the year, with corporate loans growing by 17.91% and retail loans by 1.90% [2]. Non-Interest Income and Asset Quality - Non-interest income reached 54.58 billion yuan, a year-on-year increase of 20.20%, driven by growth in investment banking and wealth management [3]. - The company’s non-performing loan ratio was 0.94%, up 0.04 percentage points from the end of the previous year, while the coverage ratio was 240.21%, down 45.94 percentage points [3]. Investment Outlook - The company is well-positioned with a solid retail customer base and a unique "self-operated + agency" model, focusing on inclusive finance and rural revitalization [4]. - The company maintains a stable dividend payout ratio of 30% for the mid-2025 period, with projected BVPS of 8.53 yuan, 8.99 yuan, and 9.56 yuan for 2025-2027 [4].