Salomon downgrades Liu Chong Hing Bank earnings forecast in 2001 and 02 by 24%

Salomon Smith Barney reduced the earnings forecast of Liu Chong Hing Bank (1111) in 2001 and 2002 by 24% to reflect the weak loan growth, conservative financial management strategy and the narrowed interest difference. It predicted that first-half per share earnings of the bank would reach HK$0.51, down 6% from last year, and the target price was set HK$9.3 while the investment rating was maintained as ˇ§neutralˇ¨. The fund house predicted that the bank would reap net profit of HK$456 mln this year and per share earnings stand at HK$1.048, down 0.2% from last year. Per share earnings next year is expected to rise 9.1% to HK$1.143.

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