Elevator Pitch
I assign a "Neutral" rating to Hong Kong-listed Hang Seng Bank Limited (HSNGY) (HSNGF) [11:HK]. The near-term outlook for Hang Seng Bank is murky, with limited visibility on the bank's loan growth and net interest margin in 2020. On the flip side, Hang Seng Bank's share price (not adjusted for dividends) has declined by -15% in the past 12 months, and current valuations are undemanding relative to historical averages, which explains the "Neutral" rating.
Hang Seng Bank currently trades at 1.74 times P/B based on its share price of HK$163.20 as of February