Bank of America Securities released a report indicating that BANKCOMM (03328) reported a net profit increase of 2.2% year-on-year to RMB 95.6 billion for the previous year, which was 0.6% below the bank's expectations. Pre-provision operating profit rose by 1.6% compared to the prior year, exceeding expectations by 0.4%. Return on equity decreased by 0.7 percentage points year-on-year to 8.4%. The dividend payout ratio declined to 32.3% compared to the previous year, with a full-year dividend per share of RMB 0.325, marking a 14.3% drop year-on-year, influenced by dilution from capital injection; however, the dividend yield remains solid at 5.3% for BANKCOMM's H-shares and 4.7% for its A-shares (601328). The institution has lowered its 2026 profit forecast for BANKCOMM by 1%, maintaining a "Neutral" rating on the H-shares while reducing the target price from HK$7.09 to HK$6.75. For BANKCOMM's A-shares, the rating is "Buy," with the target price adjusted downward from RMB 8.2 to RMB 7.54.
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