智通财经网·2025-10-14 07:20Core Viewpoint - Guosen Securities (Hong Kong) initiates coverage on Bank of China Hong Kong (02388) with an "outperform" rating, projecting net profit growth from 2025 to 2027 and a reasonable stock price range of 43.6-48.4 HKD, indicating a premium of approximately 18%-31% compared to the closing price on October 10 [1] Group 1: Revenue and Profit Growth - The company achieved a revenue of 40 billion HKD in the first half of 2025, representing a year-on-year growth of 13.3%, with a net profit attributable to shareholders of 22.2 billion HKD, up 10.5% year-on-year [1] - The annualized weighted average ROE for the first half of the year was 12.9%, an increase of 0.5 percentage points year-on-year [1] Group 2: Asset Growth - As of the end of June, the company's total assets grew by 10.0% year-on-year to 4.40 trillion HKD, with a 4.9% increase compared to the beginning of the year [2] - Deposits increased by 5.8% year-on-year to 2.87 trillion HKD, while total loans grew by 2.0% to 1.71 trillion HKD [2] - The common equity tier 1 capital ratio was 20.05%, up 0.03 percentage points from the beginning of the year [2] Group 3: Net Interest Margin and Income - The average net interest margin for the first half was 1.34%, a decrease of 12 basis points year-on-year, leading to a 3.5% decline in net interest income to 25.1 billion HKD [3] - The decline in net interest margin is attributed to the Federal Reserve's interest rate cuts, resulting in lower market rates compared to the same period last year [3] Group 4: Non-Interest Income Growth - Net fee income increased by 25.8% year-on-year, driven by a recovery in investment market sentiment and increased demand for wealth management services [4] - Other non-interest income surged by 99.1%, primarily due to higher global market trading revenues and increased prices for foreign exchange-related products [4] Group 5: Asset Quality - The non-performing loan generation rate for the first half was 0.40%, up 0.32 percentage points year-on-year, with a credit cost rate of 0.40%, an increase of 0.16 percentage points [5] - The impaired loan ratio was 1.02% at the end of June, down 0.03 percentage points from the beginning of the year, with a provision coverage ratio of 86%, up 1 percentage point [5] - Despite an upward trend in the impaired loan ratio since 2022, the company's asset quality remains superior compared to the industry average [5]