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Morgan lifts BankComm (03328) to HK$7.8
Morgan Stanley lifted its target price for Bank 
of Communications (BankComm)(03328) to HK$7.8 from HK$6.7, and maintained its
"equal-weight" rating as its valuation remains relatively low compared to peers.
  The research house said BankComm is the smallest of the big five state-owned banks. HSBC
(00005) is the third-largest shareholder in BoCom after MOF and HKSCC Nominee Ltd. Its 
relatively weak deposits franchise has led to high funding costs and below-peer NIM.
  Below-peer fee income contribution to total revenue, thus it is more sensitive to NIM
contraction. But Morgan's concern on asset quality is somewhat mitigated by more intensive
efforts in NPL digestion and recovery in recent quarters.

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