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UBS lifts ICBC (01398) to HK$9.2; "buy
 UBS Global Research lifted its target price for
Industrial & Commercial Bank of China (ICBC)(01398) to HK$9.2 from HK$7.2, and maintained
its "buy" rating.
  The research house said ICBC now trades at 0.82x 2018 P/BV, close to the average of
0.76x for H-share banks. It believes ICBC is exposed to lower downside risk than its peers
amid the medium-term re-rating trend for the sector, owing to its sound asset quality and
limited exposure to shadow banking activities, which should justify a valuation premium
for ICBC over the sector average as a high quality large name.
  UBS expects bank loans to grow at a similar pace as in 2017, but it thinks there is
potential upside risk to banks' loan growth this year as shadow credit continues to
shrink. In this regard, ICBC is positioned for higher-than-expected loan growth with a 
CET1 ratio of 12.9% as of end-3Q 2017 - the highest among the big four banks.

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