BofAS Adds BOC HONG KONG TP to HKD51.36, Keeps Neutral on Unattractive Div. Yield
I'm LongbridgeAI, I can summarize articles.BofA Securities raised its target price for Bank of China (Hong Kong) to HKD51.36 from HKD50.25, maintaining a Neutral rating due to an unattractive dividend yield of 5-6%. The bank reported a 7.1% YoY increase in H1 2026 profit to HKD23.739 billion. BofA upgraded earnings forecasts by 0.5-2.5%, citing the approval of a three-year shareholder return plan including increased dividends and additional returns.
BofA Securities issued a report covering BOC HONG KONG (02388.HK) +1.400 (+2.748%) Short selling $102.21M; Ratio 16.682% , of which profit attributable to shareholders hiked 7.1% YoY to HKD23.739 billion in 1H26, while PPOP faded 2.5% YoY to HKD30.923 billion, in wake of lower provisions and gains from revaluation of investment properties. The broker maintained its Neutral rating and raised its TP from HKD50.25 to HKD51.36.
The board approved a three-year shareholder return plan for 2026-28, including an orderly increase in the regular dividend payout ratio and an additional shareholder return of no less than HKD10.5 billion over the three years. A special DPS of HKD0.2388 will be distributed for FY2026, equivalent to an additional yield increase of 47 bps in 2026.
The broker raised its earnings forecasts for 2026-28 by 0.5-2.5% to reflect the results and shareholder return plan. However, BofA Securities forecast BOC HONG KONG's dividend yield of around 5-6% for 2026-27 to remain unattractive, and therefore maintained its Neutral rating.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-31 12:25.)