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| HSI1 | 24,231.30 | -138.41 | 383.17B |
| HSCEI1 | 8,914.03 | -24.06 | 180.15B |
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2025-03-07 14:26:19 A JP Morgan report highlighted that during a recent non-deal roadshow (NDR) conducted by the broker for HSBC HOLDINGS (00005.HK), investors expressed concerns over HSBC HOLDINGS’ fundamentals, including its restructuring execution and its ability to deliver 14%-16% ROTE, which was deemed relatively low. Discussions primarily focused on whether HSBC HOLDINGS could achieve P/E re-rating and how its valuation stacks up against STANCHART (02888.HK). The broker assigned HSBC HOLDINGS a target price of HKD108. If compared to peers in developed markets, HSBC HOLDINGS’ valuation could reach a forecast P/B of 1.5x. While STANCHART demonstrates stronger growth momentum, HSBC HOLDINGS offers greater clarity in profitability and shareholder returns. Amid uncertainties surrounding tariffs, the broker believed HSBC HOLDINGS provides a better risk-reward profile. The broker also suggested that HSBC HOLDINGS’ share price could reach a forecast P/E of 1.3x, as its current valuation, relative to historical levels and developed market peers, remains modest. Since announcing its restructuring in October last year, HSBC HOLDINGS’ stock price has underperformed STANCHART by 10.6 ppts, despite both banks topping expectations in their 4Q24 results. This indicated that the market has yet to reward HSBC HOLDINGS regarding its restructuring plan including cost saving and resources allocation. The broker maintained an Overweight rating on HSBC HOLDINGS. ~ AAStocks Financial News Web Site: www.aastocks.com | |