Zhi Tong Cai Jing·2025-10-30 07:16Core Viewpoint - Morgan Stanley has raised its profit forecasts for Bank of China Hong Kong (02388) for 2025 to 2027 by 3%, 2%, and 2% respectively, driven by HIBOR [1] Group 1: Earnings Forecast Adjustments - All three years' net interest income forecasts have been increased due to HIBOR [1] - The bank expects strong performance in wealth and market-related fees, leading to higher fee income projections [1] - Cost forecasts for all three years have been lowered due to improved cost discipline [1] Group 2: Valuation Adjustments - Morgan Stanley has raised the bear, baseline, and bull case valuations for Bank of China Hong Kong by 3%, 3%, and 1% respectively [1] - The weighting of the bear/base/bull scenarios has been adjusted from 20/60/20 to 10/70/20, reflecting a reduction in macro risks in Hong Kong [1] - The target price for Bank of China Hong Kong has been increased from HKD 33.4 to HKD 35.7, with a rating of "Underweight" [1]