Tai Fook Securities: CITIC bank is expected to rebound strongly

CITIC Bank has been aggressively selling in the near future, so that the stock market value of only about 8.4 times the expected price-earnings ratio and 1.3 times book value, we believe that the stock may be a solid rebound. CITIC Bank's business focus on the Mainland, the risk of financial crisis on the European small. The bank's revenue continued to grow strongly, but investors seemed worried about the asset quality of misplaced and premature. Our target for the stock price was 5.00 yuan, equivalent Philadelphia Eagles jerseys to the end of the year 2010, 1.5 times the estimated book value. China CITIC Bank 2010 first quarter results strong, as net interest income and fee income surged 41% a year respectively and 31%, the first quarter of 2010 net profit jumped 29% to 4.402 billion yuan. The bank's good asset quality, even if its provisions cover the end of the year compared with 2009 increased by 20.7 percentage points to 170%, but the quarterly bad debt ratio to decline further 11 basis points to 0.84%. CITIC bank accounts, loans in 2009 increased by 47% in a year, in the first quarter of 2010 continue to San Diego Chargers jerseys grow rapidly, quarterly increase of 6.3%. As the CITIC Bank in March 2010 the loan-deposit ratio was 76%, reached the upper limit set by the China Banking Regulatory Commission, so we believe that the future of the bank loan growth will slow down. High loan to deposit ratio will adversely affect net interest margin, loan growth for the future will at least match a corresponding increase in customer deposits. In March 2010, CITIC Bank's core capital ratio and capital adequacy ratio was 8.31% and 9.34%. CITIC Bank has been approved by the shareholders at the end of 2012 reached 25 billion yuan issuance of subordinated debt. As the China Banking Regulatory Commission on the medium-sized bank's capital requirements were relaxed in larger state-owned banks, China CITIC Bank to raise new equity capital is not the immediate need, but if their loans to maintain rapid growth, the bank in 2011 or there is a need to improve their core capital