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2009-5-7 03:14:00 p.m. HKT, XFNA
DJ MARKET TALK: WHB Off 2.8%; Valuation Premium To Fade - Phillip
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| 1459 [Dow Jones] While most HK financial stocks remain upbeat, with HSBC (0005.HK), Hang Seng Bank (0011.HK), Bank of East Asia (0023.HK) up 5.0%, 3.9%, 8.2%, respectively, Wing Hang Bank (0302.HK) down 2.8% at HK$53.65, on profit-taking after stock's 25.6% rise over past 5 sessions, as WHB's relatively higher P/B likely triggering profit-taking before other bank stocks. Phillip Securities notes based on Bloomberg forecast, WHB's P/B at 1.5X, vs BEA's 1.2X, ICBC (Asia)'s (0349.HK) 1.1X; while HSB, BOC HK (2388.HK) at 3.7X, 1.5X, respectively, but their respective dividend yield at 6.4%, 8.0%, while WHB yields at only 1.9%. Notes WHB's valuation premium will fade, as its ROE expected to fall further on deteriorating asset quality. Rates stock at Sell, target at HK$40.40, which implies 1.1X FY09 P/B. WHB unlikely to trouble psychological support at HK$50.00.(SUT) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
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(Delayed by 1 hour)
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