Zhi Tong Cai Jing·2025-10-10 08:27Group 1 - Citic Securities maintains a "Buy" rating for HSBC Holdings with a target price of HKD 120, expecting revenue growth rates of 0%, 1.4%, and 3.5% for 2025-2027, and net profit growth rates of 7.0%, 2.0%, and 3.0% respectively [1] - HSBC is positioned as a core beneficiary bank in the context of global industrial chain restructuring, benefiting from its extensive layout in key regions and the trend of global asset allocation among Asia's affluent retail clientele [1] - HSBC's high Return on Tangible Equity (ROTE) and high dividend yield present significant investment value [1] Group 2 - The privatization of Hang Seng Bank by HSBC is expected to enhance the overall profitability of the group and streamline organizational structure to improve business synergy in the competitive Hong Kong banking environment [2] - The acquisition at a 30% premium highlights HSBC's commitment to its Hong Kong operations and confidence in the Hang Seng brand value, ensuring the successful completion of the privatization proposal [2] - The financial impact of the privatization includes a one-time reduction of 125 basis points in HSBC's Common Equity Tier 1 (CET1) capital ratio, but slight increases in ROTE, EPS, and DPS due to profit growth and a decrease in net assets [2] - Despite pausing share buybacks for three quarters, HSBC expects a shareholder return rate of over 8% in 2026, with a cash dividend yield of 5.8% [2]