Zhi Tong Cai Jing·2025-10-29 08:29Group 1 - The core viewpoint is that HSBC Holdings (00005) demonstrates clear advantages in high ROTE and high dividend yield, indicating significant investment value [1] - The projected revenue growth rates for HSBC from 2025 to 2027 are 2.3%, 2.4%, and 3.4%, while the net profit growth rates are expected to be 6.3%, 2.2%, and 2.7% respectively [1] - Current valuation is at 1.4 times the 2025 PB and 1.5 times the 2025 PTB, with a target valuation of 1.6 times the 2025 PB (1.7 times P/TB), leading to a target price of 120 HKD [1] Group 2 - HSBC's Q3 2025 revenue and profit continue to exceed expectations, with an upgraded ROTE guidance for 2025 to a mid-teens level, potentially exceeding 15% [2] - The bank's net interest income guidance for the year has been raised to 43 billion USD, supported by stable net interest margins and strong non-interest income growth, particularly in wealth management [2] - Despite some pressure on commercial real estate asset quality in Hong Kong, the overall impact is manageable, with credit costs remaining stable at 40 bps [2] Group 3 - Long-term, HSBC is positioned favorably with a 3% terminal policy rate, indicating ample loan pricing and investment return opportunities, alongside robust credit demand and strong asset quality [3] - The restructuring of global supply chains and the outbound expansion of Chinese enterprises are expected to accelerate, benefiting HSBC as a key player in this environment [3] - HSBC's extensive presence in key regions positions it as a core beneficiary in the evolving landscape of globalization 2.0, particularly with the trend of asset allocation among affluent retail clients in Asia [3]