Ge Long Hui A P P·2025-11-04 03:48Core Viewpoint - China Construction Bank (CCB) reported a year-on-year net profit growth of 4.2% in the third quarter, reversing the negative growth of 1.4% in the first half of the year [1] - The bank is expected to report positive earnings growth in the fourth quarter due to a slowdown in the decline of net interest margin and stable asset quality [1] Financial Performance - CCB's net profit for the third quarter increased by 4.2% year-on-year, contrasting with a 1.4% decline in the first half of the year [1] - The bank anticipates maintaining solid asset quality in the fourth quarter, contributing to positive earnings growth [1] Valuation and Investment Outlook - CCB is considered undervalued based on its robust scale expansion, stable asset quality, and decent return on equity [1] - The average return on equity is projected to reach 9.9% by 2025 [1] - The target price for CCB's H-shares has been raised from HKD 8.95 to HKD 10.44, maintaining a "Buy" rating based on approximately 0.7 times the expected price-to-book ratio for 2025 [1]