Daiwa: Target price of HK$7.8 for the initial “holding” rating for ICBC (01398)

The Zhitong Finance App learned that Daiwa released a research report stating that it covered ICBC (01398) for the first time and gave it a “holding” rating. The target price for H shares was HK$7.8. The bank pointed out that ICBC is the world's largest bank in terms of total assets and is regularly ranked as the financial institution with the highest profitability, but the current valuation multiplier of 0.55 times the 2026 market account ratio already reflects its capital advantage.

Yamato believes that in order for ICBC to be revalued, the return on shareholders' equity must significantly exceed expectations or increase dividends, but neither is expected to occur in the current downturn cycle. However, the downside will be limited by the background of sovereignty, systemic importance, and predictable dividends. Daiwa expects the total operating profit of ICBC to grow by 4%-8% per year from 2026 to 2028, with dividends per share of RMB 0.319, RMB 0.336 and RMB 0.358 respectively during the period.