Ge Long Hui A P P·2025-10-31 05:23Core Viewpoint - Agricultural Bank of China (1288.HK) reported a 3% year-on-year increase in net profit for the first three quarters, reaching RMB 220.9 billion, reflecting a 2.7% increase compared to the first half of the year [1] Financial Performance - Core earnings increased by 1% year-on-year, contrasting with a 0.2% decline in the first half of the year, achieving 82% of Bank of America's full-year forecast [1] - The common equity tier 1 capital ratio rose by 5 basis points quarter-on-quarter to 11.2% [1] - Return on equity for the first three quarters decreased by 0.2 percentage points year-on-year to 10.5% [1] Forecast and Valuation - Bank of America raised its profit forecast for Agricultural Bank for the years 2023 to 2027 by 1% to 2%, reflecting an adjustment in return on equity expectations to 10% [1] - The target price for Agricultural Bank was increased from HKD 5.70 to HKD 5.81, but the investment rating was downgraded from "Buy" to "Neutral" due to the bank's significant outperformance compared to peers and unattractive dividend yield [1]