This equity research report focuses on Bank of Gansu (02139 HK), a company in the banking sector. The report's summary states that earnings are expected to gradually recover to normal levels in 2023 onwards, and the rating for the company is downgraded to "Accumulate." The report revises the target price (TP) to HK$1.37 and forecasts the company's shareholders' net profit to grow YoY by 7.3%, 41.1%, and 68.1% for FY22, FY23, and FY24, respectively. The report also notes that the company's financial results missed expectations in 1H22, with YoY changes in operating income, PPOP, and shareholders' net profit of 0.9%, -1.3%, and 3.3%, respectively. The report expects pressure on the company's earnings outlook due to the disposal of risk assets in 2H22, but notes that pressure on disposal of risk assets is expected to mitigate after several years of disposal and asset structure adjustment.
