“Bank Restoration Potential: High Dividend Large & Small/Med Banks and Central Enterprises ICBC, CCB & ABC Recommended”

Securities Times Net News, Huatai Securities pointed out that the expected improvement in volume and price + high cost-effective allocation + valuation return can be expected, and seize the opportunity for bank restoration. my country’s banking industry has excellent profitability and solid asset quality, but it has been in a low valuation for a long time. As retail and small and micro loans enter the recovery channel, the pressure of financial profit sharing will ease, and the volume and price of banks are expected to meet the inflection point. Under the background of general pressure on the return rate of major assets, the banking sector, which enjoys the dual advantages of low valuation and high dividend, has a prominent cost performance ratio, which is in line with the long-term capital investment style. With the accelerated entry of insurance funds, the expansion of passive products, and the continuous influx of foreign capital, it is expected to support the continuation of the market. Pay attention to the allocation value of large banks with high dividends, and small and medium-sized banks may get opportunities to make up for growth. Individual stock recommendations: 1) Undervalued central enterprises ICBC (AH), China Construction Bank (AH), Agricultural Bank of China (AH); 2) Ningbo and Suzhou with outstanding growth; 3) Small and micro-chains Changshu, Zhangjiagang, Ruifeng.

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