Zhi Tong Cai Jing·2025-11-04 03:27Core Viewpoint - Bank of China International reports that Agricultural Bank of China (601288)(01288) is expected to see a decline in net interest margin in the first three quarters and the first half of 2025, while maintaining strong profitability and improving asset quality, leading to an increased target price for H-shares [1] Financial Performance - Agricultural Bank's net interest margin for the first three quarters and the first half of 2025 is projected to be 1.3% and 1.32%, respectively, down by 12 and 10 basis points compared to the end of 2024 [1] - The bank's net profit for the third quarter of 2025 is expected to grow by 3.7% year-on-year, accelerating from 3.2% in the second quarter and 2.2% in the first quarter [1] Valuation and Investment Outlook - Bank of China International raises the target price for Agricultural Bank's H-shares from HKD 6.09 to HKD 6.95, equivalent to a forecasted price-to-book ratio of 0.8 times for this year [1] - The bank's solid asset quality, decent shareholder return rate, and attractive dividend yield indicate that its value is underestimated, with an expected average return on equity of 10.1% in 2025 [1]