EBSCN·2025-09-02 09:00Investment Ratings - China Merchants Bank: BUY with a target price of HK$54.42 [5][6] - Agricultural Bank of China: BUY with a target price of HK$6.09 [7][8] - Postal Savings Bank of China: BUY with a target price of HK$6.35 [10][12] - Industrial and Commercial Bank of China: BUY with a target price of HK$7.15 [13][14] - China Construction Bank: BUY with a target price of HK$8.95 [15][16] - China Everbright Bank: BUY with a target price of HK$3.98 [18][19] - 3SBio Inc: BUY with a target price of HK$38.20 [20][21] - Longfor Group: HOLD with a target price of HK$9.52 [23][24][25] Core Insights - China Merchants Bank's attributable net profit increased by 2.7% YoY in 2Q25, recovering from a 2.1% decline in 1Q25, with outstanding asset quality but a drop in NIM [5][6] - Agricultural Bank of China's attributable net profit rose by 3.2% YoY in 2Q25, maintaining stable asset quality despite a slight decline in NIM [7][8] - Postal Savings Bank of China's net profit increased by 4.8% YoY in 2Q25, with strong asset quality and an attractive valuation [10][12] - Industrial and Commercial Bank of China's net profit grew by 1.4% YoY in 2Q25, showing improvement in asset quality and attractive valuation [13][14] - China Construction Bank's net profit increased by 1.6% YoY in 2Q25, with a decline in net interest income but solid asset quality [15][16] - China Everbright Bank's net profit rose by 0.8% YoY in 2Q25, with expectations of maintaining solid asset quality despite a declining NIM [18][19] - 3SBio Inc's revenue declined by 0.8% YoY in 1H25, but adjusted net profits increased by 2.1% YoY, with new product launches driving sales [20][21] - Longfor Group's revenue grew by 25.4% YoY in 1H25, but gross margin narrowed significantly, leading to a substantial decline in core net profit [23][24][25] Summary by Company China Merchants Bank - Attributable net profit increased 2.7% YoY in 2Q25 after a decline in 1Q25 [5][6] - Asset quality remains outstanding, but NIM dropped in 1H25 [5][6] - Target price revised to HK$54.42, maintaining BUY rating [5][6] Agricultural Bank of China - Attributable net profit increased 3.2% YoY in 2Q25 [7][8] - NIM was 1.32% in 1H25, down from 2024 [7][8] - Target price raised to HK$6.09, maintaining BUY rating [7][8] Postal Savings Bank of China - Attributable net profit increased 4.8% YoY in 2Q25 [10][12] - NIM reached 1.70% at end-June 2025 [10][12] - Target price revised to HK$6.35, maintaining BUY rating [10][12] Industrial and Commercial Bank of China - Attributable net profit increased 1.4% YoY in 2Q25 [13][14] - NIM reached 1.30% in 1H25 [13][14] - Target price raised to HK$7.15, maintaining BUY rating [13][14] China Construction Bank - Attributable net profit increased 1.6% YoY in 2Q25 [15][16] - Net interest income dropped 1.1% YoY in 2Q25 [15][16] - Target price raised to HK$8.95, maintaining BUY rating [15][16] China Everbright Bank - Attributable net profit increased 0.8% YoY in 2Q25 [18][19] - NIM expected to decline in 2025 [18][19] - Target price raised to HK$3.98, maintaining BUY rating [18][19] 3SBio Inc - Revenue declined by 0.8% YoY in 1H25 [20][21] - Adjusted net profits increased by 2.1% YoY [20][21] - Target price lifted to HK$38.20, reiterating BUY rating [20][21] Longfor Group - Revenue grew by 25.4% YoY in 1H25 [23][24][25] - Gross margin narrowed significantly, leading to a decline in core net profit [23][24][25] - Target price cut to HK$9.52, maintaining HOLD rating [23][24][25]