STOCK CALL: Citigroup raises China Citic Bank (SSE:601998, HKG:0998) target to HK$5.50 from HK$4.60 after increasing FY09-11 net profit estimates by 6%, 12%, 11% respectively, mainly on higher FY09 credit growth assumption of 40% vs previous 28%. Keeps at Buy. "China Citic Bank is our top pick among the mid/smaller-sized H-share banks for its inexpensive valuations (P/B, P/E, P/PPOP multiples are among the lowest in the sector) and strong growth, as the smallest H-share bank with ample surplus capital to fund asset growth." Expects bank to report strong on-quarter growth in net interest income going forward as has highest loan growth among H-share banks, most room to improve deposit mix. Shares indicated +2.6% at HK$4.82 at pre-open. (LES)
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