---
title: "JPM Cuts ABC  TP to HKD6.55, Maintains Overweight"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/291616849.md"
description: "JPMorgan updated its model for ABCfollowing 1Q26 results, lowering earnings forecasts for 2026-2028 due to expected NIM narrowing. Despite improving asset quality and low overseas exposure, weaker capital positions were noted. Consequently, JPM cut the H-share target price from HKD7.2 to HKD6.55 but maintained an Overweight rating."
datetime: "2026-07-03T03:30:39.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/291616849.md)
  - [en](https://longbridge.com/en/news/291616849.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/291616849.md)
generator: "portal-rs"
---

# JPM Cuts ABC  TP to HKD6.55, Maintains Overweight

JPM released a research report stating that it updated its model for ABC (01288.HK) +0.040 (+0.753%) Short selling $247.27M; Ratio 45.228% to reflect its 1Q26 results, and lowered its earnings forecasts for 2026 to 2028 by 1.6%, 3.7% and 5.6%, respectively, mainly due to expected NIM narrowing of 2 bps, 5 bps and 4 bps, respectively, caused by deterioration in the loan portfolio.

JPM noted that ABC's asset quality is improving, with the highest non-performing loan coverage ratio among China's four major state-owned banks, which is believed to provide greater buffer for future earnings. At the same time, the bank has the lowest overseas exposure among the four major state-owned banks and is therefore less affected by risks of downturns in overseas markets. However, ABC's capital position is relatively weaker among the four major state-owned banks, with its Common Equity Tier 1 capital adequacy ratio (CET1) lower than peers, while growth in risk-weighted assets (RWA) is higher. 

The broker rolled forward ABC's valuation base to December 2027, and therefore lowered its H-share TP from HKD7.2 to HKD6.55, while maintaining the Overweight rating. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-02 16:25.)

### Related Stocks

- [601288.CN](https://longbridge.com/en/quote/601288.CN.md)
- [01288.HK](https://longbridge.com/en/quote/01288.HK.md)
- [JPM.US](https://longbridge.com/en/quote/JPM.US.md)
- [ACGBY.US](https://longbridge.com/en/quote/ACGBY.US.md)
- [JPM-M.US](https://longbridge.com/en/quote/JPM-M.US.md)
- [JPM-C.US](https://longbridge.com/en/quote/JPM-C.US.md)
- [JPM-D.US](https://longbridge.com/en/quote/JPM-D.US.md)
- [JPM-L.US](https://longbridge.com/en/quote/JPM-L.US.md)
- [8634.JP](https://longbridge.com/en/quote/8634.JP.md)
- [JPM-K.US](https://longbridge.com/en/quote/JPM-K.US.md)
- [JPM-J.US](https://longbridge.com/en/quote/JPM-J.US.md)

## Related News & Research

- [ABC Confident of Sustaining Positive Operating Momentum This Yr, Moderately Scaling up Bond Investments](https://longbridge.com/en/news/297479661.md)
- [Agricultural Bank of China Boosts Capital With RMB50 Billion Tier 2 Bond](https://longbridge.com/en/news/297305576.md)
- [Dah Sing Banking Group Declares HKD 0.35 Interim Dividend for First Half of 2026](https://longbridge.com/en/news/297277066.md)
- [MINSHENG BANK  Interim Net Profit Falls 8.6% YoY to RMB19.537 billion; Declares Interim Dividend of RMB1.18 per 10 Shares](https://longbridge.com/en/news/297426428.md)
- [AcuCort notifies availability of August 2026 newsletter press release](https://longbridge.com/en/news/297505730.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**