Update shared on 05 Dec 2025
Fair value Increased 0.11%Analysts have nudged their price target on China Merchants Bank slightly higher to approximately $52.78 from about $52.72, reflecting marginally lower discount rate assumptions and steady expectations for revenue growth, profit margins, and future valuation multiples.
What's in the News
- Received regulatory approval from the National Financial Regulatory Administration for China Merchants Bank Financial Asset Investment Co., Ltd. to commence business, clearing the way for formal industrial and commercial registration and licensing (Key Developments)
- New wholly owned subsidiary China Merchants Bank Financial Asset Investment Co., Ltd., with registered capital of RMB 15.0 billion, will focus on market based debt to equity swaps to better serve the real economy (Key Developments)
- The subsidiary is expected to pursue pilot equity investment operations to support technological innovation and strengthen group wide industry finance synergies and comprehensive operational capabilities (Key Developments)
- Board meeting scheduled for October 29, 2025 to consider and approve the announcement of third quarter 2025 results for publication (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly to CN¥52.78 from CN¥52.72, reflecting a marginal uplift in the bank's intrinsic valuation.
- Discount Rate has fallen slightly to 8.17 percent from 8.18 percent, implying a modest reduction in perceived risk or required return.
- Revenue Growth Forecast remains effectively unchanged at about 13.05 percent, indicating stable expectations for top line expansion.
- Net Profit Margin Outlook is essentially flat at about 39.93 percent, suggesting no material change in profitability assumptions.
- Future P/E Multiple has increased marginally to 9.94x from 9.93x, signaling a slightly higher valuation multiple applied to forward earnings.
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