Investment Rating - The report maintains a "Buy" rating for the company [9][45] Core Insights - From a long-term perspective, the company remains the domestic bank with the highest customer quality, ROA, and endogenous growth capability. The stock price has adjusted since the second half of 2025, with the A-share dividend yield rising to 5.11%, and A-shares trading at a 10% discount to H-shares [2][45] - In the short term, retail market demand has not yet recovered, and the quality of retail assets remains volatile. The real estate sector is undergoing a process of clearing existing non-performing loans, which constrains valuation. The company's unique endogenous growth dividend value is expected to support the current valuation [2][45] Summary by Sections Performance Overview - The company's revenue growth for 2025 is +0.01%, marking the first positive growth since 2023, with a net profit growth of +1.2% [6][14] - The improvement in revenue growth is attributed to a narrowing decline in net interest margin and a recovery in fee income growth to 4.4%, the first positive growth since 2022 [6][14] Asset and Liability - Total assets grew by 7.6% year-on-year, reaching over 13 trillion yuan, with loans increasing by 5.4% [16] - Corporate loans saw a significant increase of 12.3%, the highest growth rate since 2013, while retail loans grew by only 2.1% [16] Profitability - The company's ROA for 2025 is 1.19%, the highest among listed banks, although ROE decreased by 1.05 percentage points to 13.44% [14][17] - Net interest income growth turned positive at 2.0% for 2025, with a net interest margin stabilizing at 1.87% [17][20] Asset Quality - The non-performing loan generation rate for 2025 is 1.03%, slightly down from the previous year, with total new non-performing loans amounting to 69.2 billion yuan [26][27] - The company maintains a high provision coverage ratio of 392%, despite a decrease from the previous year [27][44] Capital and Dividends - The core Tier 1 capital adequacy ratio is 14.16%, reflecting a decrease due to changes in asset and loan structures [44] - The dividend payout ratio for 2025 is 35.34%, consistent with previous years, indicating a stable dividend policy [44]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 招商銀行股份有限公司 CHINA MERCHANTS BANK CO., LTD. （於中華人民共和國註冊成立的股份有限公司） IA：指本公司宣告贖回的公告日的計息年度應計股息； （H股股票代碼：03968） 關於贖回優先股的第三次提示性公告 招商銀行股份有限公司（「本公司」）於2017年12月非公開發行2.75億股境內優先股 （「本次優先股」），募集資金總額為人民幣275億元，優先股簡稱「招銀優1」，優先 股代碼360028。經本公司股東大會授權董事會及董事會轉授權的兩位董事批准， 並經國家金融監督管理總局答覆無異議，本公司擬於2026年4月15日贖回本次優 先股，現將有關贖回事宜提示如下： 一、贖回規模 本公司擬贖回本次優先股合計2.75億股，每股面值人民幣100元，總金額人民 幣275億元。 二、贖回價格 本次優先股的贖回價格為本次優先股的票面金額加當期應計股息。應計股息 的計算公式為：IA=B× ...

Core Insights - The chairman of China Merchants Bank, Miao Jianmin, emphasized that the true competitive advantage lies in internalizing a customer-centric culture rather than just focusing on retail business and fintech [1][3] - Miao highlighted that employees at China Merchants Bank rarely leave on time, showcasing a strong commitment to the company's culture [1][3] - The bank's ability to outperform its peers during industry downturns is attributed to its strong cultural foundation [4] Financial Performance - In 2025, China Merchants Bank reported employee expenses of 68.689 billion yuan, reflecting a year-on-year increase of 0.88% [2][4] - As of the end of 2025, the bank employed a total of 121,585 individuals, including dispatched personnel [2][4]

Group 1 - The core message of the news highlights the commitment of China Merchants Bank's Hohhot branch and its affiliated branches to environmental sustainability by participating in the 20th anniversary of "Earth Hour" through reduced lighting initiatives [1] - The bank has launched an ESG-themed week titled "Do Everything Possible, Low Carbon Solutions," encouraging employees to adopt green practices in their daily work and life [1] - Over the past year, the Hohhot branch has issued more than 2.7 billion yuan in green loans, supporting 19 enterprises in their green development efforts, showcasing the bank's dedication to sustainable finance [1] Group 2 - The bank's actions reflect a broader response to the contemporary challenge of sustainable development, emphasizing a practical approach to energy conservation and green finance [2] - The initiative aims to enhance public awareness and support for environmental protection through both online and offline channels, including employee engagement in sharing promotional materials [1][2] - The bank's efforts are positioned as a significant contribution to the sustainable development of Inner Mongolia, promoting a low-carbon and intelligent future [2]

Core Viewpoint - Goldman Sachs maintains a "Buy" rating for China Merchants Bank (03968), with slight adjustments to profit forecasts for 2026 to 2028, lowering net profit estimates by approximately 1% [1] Group 1: Financial Projections - The target price for H-shares is slightly reduced to HKD 53.53, while the target price for A-shares is adjusted to RMB 54.87 [1] - The bank expects net interest margin to stabilize and credit growth to recover, leading to a rebound in net interest income [1] - Wealth management business is anticipated to drive better growth in fee income [1] Group 2: Management Insights - Management indicated that revenue growth for 2026 is expected to stabilize and trend upwards, primarily due to a diminishing contraction in net interest margin and continuous improvement in fee income [1] - The bank's 2025 Q4 saw an increase in non-performing loan formation rate, attributed to a one-time exposure to real estate risks, but the impact is limited due to sufficient provisions in the real estate sector [2] Group 3: Asset Quality and Capital - The outlook for corporate asset quality is positive, while retail asset quality remains under pressure; overall risk is manageable, and credit costs are expected to decline, supporting better profit growth [2] - The core Tier 1 capital adequacy ratio has decreased mainly due to mid-term dividend introduction and bond market volatility [2] - Future risk-weighted asset growth is projected to be between 9% and 10%, with a stable dividend payout ratio expected [2]

Core Viewpoint - China Merchants Bank announced adjustments to certain service projects to enhance service delivery, effective from June 30, 2026 [1] Group 1: Service Adjustments - The "TH004-Wealth Planning and Advisory" service will be modified to include "Wealth Inheritance Trust Financial Advisory Services" and "Charitable Trust Financial Advisory Services," while removing several services such as investment strategy research and personal estate arrangement [1] - New pricing methods will be introduced for services GJ001, GJ003, LN001, LN002, and LN019, effective from June 30, 2026 [1] - The "GJ015-Consultation/Witness/Credit Certification/Trade Credit Report" service will revert to its original pricing structure starting April 1, 2026, following the expiration of a previous discount scheme [1]

Core Viewpoint - The report indicates that China Merchants Bank is expected to achieve a revenue growth of 0.01% and a net profit attributable to shareholders growth of 1.2% in 2025, with a target price set at 55.8 yuan and a maintainance of the "buy" rating [1][2]. Group 1: Financial Performance - In 2025, the bank's revenue and net profit attributable to shareholders are projected to grow by 0.01% and 1.2% year-on-year, with growth rates improving by 0.5 percentage points and 0.7 percentage points compared to the first three quarters [2]. - For Q4 2025, the bank's revenue and net profit are expected to increase by 1.6% and 3.4% year-on-year, with quarter-on-quarter growth rates of -0.5 percentage points and +2.4 percentage points respectively [2]. - The net interest margin for 2025 is projected at 1.87%, remaining stable compared to the previous three quarters, with a slight improvement in Q4 to 1.86% [3]. Group 2: Income Sources - The bank's non-interest income is expected to grow by 4.4% year-on-year in 2025, with a significant increase of 16.3% in Q4 compared to the same quarter last year [3]. - Wealth management income is projected to reach 26.7 billion yuan in 2025, reflecting a year-on-year growth of 21.4%, driven by substantial increases in sales of financial products [3]. Group 3: Asset Quality - The overall asset quality remains stable, with a non-performing loan ratio of 0.94% and a provision coverage ratio of 392% at the end of 2025, showing no change from Q3 [4]. - The overdue loan ratio improved to 1.25% by the end of 2025, down 9 basis points from Q3 [4]. - The bank's retail overdue rate is reported at 1.71%, with a notable decline in overdue rates for consumer loans and credit cards [4].

Group 1: Strategy and Market Overview - The report emphasizes the importance of combining momentum strategies with quarterly report trading for April, suggesting that timing and industry selection can enhance strategy performance [3] - A review of the A-share market indicates a rebound after a dip, influenced by geopolitical tensions and global market fluctuations [3][4] - The report highlights the performance of various asset classes, noting that commodity prices have generally risen, while the U.S.-China interest rate spread has expanded [3] Group 2: Fixed Income Insights - The report tracks a significant drop in pig prices, reaching a new low, indicating a challenging environment for the agricultural sector [5] - The "fixed income plus" products are facing redemption pressures, which may lead to a reduction in equity asset allocations and widening of yield spreads [6] Group 3: Industry-Specific Insights - In the machinery and equipment sector, the demand for motor winding equipment is expected to surge due to the growth of the robotics industry, with market size projected to grow from 0.7 billion to 13.5 billion by 2030 [7][8] - The coal industry is experiencing price fluctuations due to geopolitical tensions affecting LNG supplies, with increased reliance on coal for power generation expected to support global coal prices [13][14] - The pig farming sector is facing significant losses, with prices dropping to 9.46 yuan/kg, and the report suggests that the industry will continue to struggle in the near term [17][18] Group 4: Company Performance Highlights - China Merchants Bank reported a slight increase in revenue and net profit for 2025, with a focus on wealth management and stable asset quality [24][25][28] - Meituan's core local business is entering a profit recovery phase as competition in the food delivery sector eases [29] - Huakong Technology achieved substantial revenue growth in 2025, driven by its strategic upgrade of the "3+N+3" smart product platform [30] Group 5: Investment Recommendations - The report recommends focusing on companies in the coal sector such as China Coal Energy and Yanzhou Coal Mining, which are expected to benefit from the current market dynamics [15] - In the agricultural sector, it suggests monitoring companies like Muyuan Foods and Wens Foodstuffs for potential investment opportunities despite current losses [17][18] - For the machinery sector, it highlights the investment potential in Tianzhong Precision Machinery, which has a strong technological foundation in motor winding equipment [8]

Core Viewpoint - China Merchants Bank (CMB) has shifted its focus from high growth to sustainable stability, reporting a slight revenue increase of 0.01% and a net profit growth of 1.21% for 2025, which is underwhelming compared to peers like Shanghai Pudong Development Bank and Bohai Bank, which reported net profit growths of 10.52% and 4.61% respectively [1][2]. Group 1: Financial Performance - CMB's financial report indicates a significant pressure test for the banking industry, with a weak credit demand leading to a historic drop in the proportion of demand deposits below 50% [3][4]. - Despite the challenges, CMB's net interest margin (NIM) rebounded in Q4, reaching 1.87%, maintaining a significant lead over peers [10][12]. - The bank's average cost of interest-bearing liabilities decreased by 38 basis points to 1.26%, contrasting with peers who maintained higher costs [13][14]. Group 2: Wealth Management and Retail Banking - CMB's wealth management business has become a crucial driver of revenue growth, with total assets under management (AUM) rising to 17.08 trillion yuan, a 14.44% increase year-on-year [15][18]. - The bank's strategy of not relying on high deposit rates to attract funds is supported by its extensive wealth management ecosystem, which has led to a significant accumulation of low-cost demand deposits [16][17]. - The number of high-net-worth clients has increased, indicating a concentration of wealth that enhances CMB's risk resilience [20]. Group 3: Risk Management and Future Outlook - CMB's non-performing loan (NPL) ratio remained stable at 0.94%, reflecting strong asset quality management despite industry-wide challenges [8][25]. - The bank's provisioning coverage ratio decreased to 391.79%, still among the highest in the industry, indicating a robust buffer against potential risks [29]. - Management has acknowledged the ongoing challenges in the macroeconomic environment, projecting continued pressure on net interest income but emphasizing a focus on asset-liability management to maintain stability [25][29].

Core Viewpoint - The chairman of China Merchants Bank, Miao Jianmin, defined the bank's "moat" as a customer-centric corporate culture, which has sparked public backlash due to his comments on employees rarely leaving work on time, implying a culture of overtime work [2][15][28] Employee Conditions - The average salary for employees at China Merchants Bank in 2024 is approximately 581,000 yuan, a decrease of over 40,000 yuan, or nearly 7%, compared to 2022 [4][17] - The total pre-tax compensation for the bank's president in 2024 is 2.9617 million yuan, down 660,000 yuan from 2022, while the total compensation for directors and senior management dropped from 44.97 million yuan to 26.08 million yuan, a decline of 42.01% [4][17] - There is a significant disparity in salaries within the bank, with senior executives earning millions while frontline employees earn only a few thousand yuan per month, leading to feelings of frustration among staff [3][17] - Employees have faced "reverse salary recovery," where previously received performance bonuses can be reclaimed by the bank, adding to their dissatisfaction [5][18] Customer Complaints and Regulatory Issues - In 2024, China Merchants Bank received a total of 206,000 complaints through various channels, indicating significant customer dissatisfaction [6][20] - The bank's complaints primarily focus on aggressive debt collection practices and unclear credit card interest calculations, leading to legal actions from customers [7][22] - The bank has faced numerous penalties, with 30 fines totaling over 25 million yuan in 2025 alone, raising questions about compliance and customer service [9][23] Financial Performance - For the year 2025, China Merchants Bank reported total revenue of 337.532 billion yuan, a marginal increase of 0.01%, and a net profit of 150.181 billion yuan, up 1.21% [10][24] - The bank's total assets exceeded 13 trillion yuan, with retail customer assets surpassing 17 trillion yuan, indicating a strong market position [10][24] - Despite low non-performing loan rates at 0.94%, there are signs of increasing bad debts in retail loans, with the non-performing loan balance exceeding 38 billion yuan [11][27] Cultural and Operational Concerns - The emphasis on a customer-centric culture has been criticized as being reduced to a culture of overtime, with employees feeling undervalued and overworked [28][29] - The disconnect between the bank's corporate culture and the realities faced by employees raises concerns about the sustainability of its competitive advantages [28][29]