Analysts have revised their price target for Hang Seng Bank downward from $114.31 to $108.50. They cite shifts in projected profit margins, as well as slight adjustments to expected revenue growth and valuation multiples.
What's in the News
- The Board of Directors announced that Ms. Luanne Lim will be appointed as Chief Executive of Hang Seng Bank, effective 20 October 2025. She will succeed Ms. Diana Cesar. (Key Developments)
- HSBC Asia Pacific has initiated a proposal to privatise Hang Seng Bank, with plans to delist the company from the Hong Kong Stock Exchange if approved. Shareholders would receive HKD 155.00 per share, subject to adjustment. (Key Developments)
- The Hongkong and Shanghai Banking Corporation Limited has proposed acquiring the remaining 36.51% stake in Hang Seng Bank, which would make it a wholly owned subsidiary of HSBC Holdings. The transaction is expected to close in the first half of 2026. (Key Developments)
- Hang Seng Bank is considering selling a property-backed loan portfolio valued at a minimum of USD 1 billion to address bad debt arising from the commercial real estate slump. (Key Developments)
- The Board is scheduled to meet on 10 October 2025 to consider declaring the bank's third interim dividend for 2025. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has decreased from HK$114.31 to HK$108.50.
- Discount Rate remains unchanged at 6.9%.
- Revenue Growth projection has risen slightly, moving from 8.30% to 8.51%.
- Net Profit Margin is forecast to fall from 41.85% to 36.72%.
- Future P/E multiple has increased from 14.44x to 15.53x.
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