DBS: Agricultural Bank of China Ltd – HOLD TP HK$3.10

High exposure to vulnerable SME loans

• Cautious about its SME, county-area corporate loan exposure, which is more vulnerable to uncertainties 
• Expect steady loan growth with a relatively low LDR 
• Expect stable bond yield ahead, which is supportive to ABC’s yield due to its high bond exposure 
• Reinstate coverage with HOLD and TP at HK$ 3.10