China Merchants Bank Co Ltd Class A
600036: XSHG (CHN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥57.00 | Drlyctt | Nvmkvtqsw |
China Merchants Bank: Lowering Valuation as Fee Income and Margin Pressure Dampen Outlook
We lower our fair value estimate on China Merchants Bank, or CMB, to HKD 54 from HKD 64 per H-share and CNY 50 from CNY 55 per A-share after we reduce our 2023 net interest margin, or NIM, forecasts by 3 basis points and 2023 fee income growth by 7 percentage points. We push back our original assumptions for consumption growth to stabilize in China in second-half 2023 and incorporate a less optimistic outlook for recovery in consumer credits and the wealth management business as property developer credit risks rise.