Guoxin Securities·2026-03-31 05:45Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's revenue and profit have shown stable growth, with operating income reaching HKD 77 billion in 2025, a year-on-year increase of 8.1%, and net profit attributable to ordinary shareholders reaching HKD 40.1 billion, up 4.9% year-on-year [1][3] - The company's asset scale has steadily expanded, with total assets growing by 7.0% year-on-year to HKD 4.49 trillion by the end of 2025 [1] - The net interest margin has decreased to 1.40%, down 6 basis points year-on-year, primarily due to declining market interest rates [2] - Non-interest income has increased significantly, with net fee income rising by 13.9% to HKD 11.3 billion, driven by strong demand in wealth management [2] - Asset quality has shown marginal pressure, with the non-performing loan generation rate increasing to 0.40%, up 0.13 percentage points year-on-year [2] Financial Forecasts - The company is expected to achieve net profits of HKD 42.1 billion in 2026 and HKD 44.4 billion in 2027, with a projected growth rate of 5.0% and 5.4% respectively [3][4] - Earnings per share (EPS) are forecasted to be HKD 3.98 for 2026 and HKD 4.20 for 2027, with corresponding price-to-earnings (PE) ratios of 10.2 and 9.7 [3][4] - The return on equity (ROE) is projected to be 11.7% for 2026 and 11.7% for 2027, indicating stable profitability [4][6]