Construction Bank: Interest margin elasticity small risk control good

To achieve net profit of 70.779 billion yuan, an increase of 26.75% per cent the performance is slightly higher than our expectations, mainly for its intermediary business income higher than our expectations, and the provision of expenditure is lower than we expected. Realize the operating income of 153.307 billion yuan, an increase of 17.15%, achieve total profit of 92.194 billion yuan, an increase of 27.22%.　　The main factors contributing to the year-on-year increase in net income were net interest income growth, intermediate business growth, and the year-on-year decline in spending on provision and expenditure.　　Performance Analysis 1, loan structure adjustment, the difference between the quarter of a small rebound; 2, the intermediary business rapid growth, the traditional and emerging business goes hand in hand; 3, bad double drop, set back to feed back profits; 4, cost control is good, effective tax rate is low; 5, capital consumption is reasonable, the allotment is expected to Investment advice and Risk tips 2010 CCB Net profit of 138.344 billion yuan, earnings per share of 0.59 yuan, an increase of 29.49%.　　Current valuations correspond to 8.11 times times 10 pe,1.76 times 10 PB. We believe that the bank has a sound business, long-term performance planning, valuation advantages, the existence of long-term investment value. Maintain the "buy" rating, the target price is 5.45 yuan/share, corresponding to 9.2 times times 2010 pe,2 Times 2010PB. The risk hint aspect, 1, the interest difference elasticity is small, concerns its second half year capital cost change, 2, the mortgage non-performing small rebound, concerns in the real estate adjustment this business asset quality condition.