HSBC Research Raises ICBC TP to HKD8.6, Higher Payout Ratio Reflects Intention to Enhance Shareholder Returns
I'm LongbridgeAI, I can summarize articles.HSBC Research raised ICBC's H-share target price to HKD8.6 and A-share target to RMB8.1, citing better-than-expected 1H26 results including a 2.9% YoY net profit increase. The broker maintained a Buy rating on H-shares and Hold on A-shares, highlighting improved cost control, fee income growth, and a higher dividend payout ratio of 31.8%, which signals an intention to enhance shareholder returns.
HSBC Global Investment Research issued a report on ICBC (01398.HK) +0.105 (+1.410%) Short selling $239.48M; Ratio 23.842% , of which net profit for 1H26 hiked 2.9% YoY, above the broker's and market's expectations, while PPOP added 11.4% YoY, thanks to revenue growth and better-than-expected cost control.
The broker maintained its Buy rating on the H shares and raised the H-share TP to HKD8.6 from HKD8. The TP for ICBC (601398.SH) +0.170 (+2.163%) A shares was raised to RMB8.1 from RMB7.6, while the A-share rating was maintained at Hold.
ICBC's EPS for 1H gained 2.9% YoY, with growth topping the broker's and market expectations. Among key indicators, positive factors included mildly improving NII, with 2Q26 NIM maintained at 1.29%, given repricing of retail time deposits; positive fee and other income, with fee income in 1H mounting 3.3% YoY, backed by retail and corporate wealth management businesses; positive PPOP and cost efficiency; and positive capital returns, as the interim dividend payout ratio rose 1.2 ppts YoY to 31.8%, reflecting the intention to enhance shareholder returns. Mixed trends included the balance sheet and asset quality.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-28 16:25.) (A Shares quote is delayed for at least 15 mins.)