CLSA 里昂证券：银行业 　

１３页　CLSA China Friday, December 29, 2006

-06.12.29_clsa061229

Sector review - Banks: China banks’ EPS will rise by 12% on average on
the tax unification. We expect only half year impact in 2007 and full year
impact in 2008. ICBC & CMB benefit most as they have been paying higher
effective tax. No sharp consensus change’s expected, as the trend’s already
priced in. We raise our 2008 EPS by 4% and target price by 5% on average.
China banks are richly valued at 4x PB (06F), with only 14% ROE. ICBC &
CMB are core holdings, with upside still on our 3-stage DDM.