Ge Long Hui·2025-10-30 06:09Core Viewpoint - The report from Zheshang Securities indicates that from Q1 to Q3 of 2025, China Merchants Bank's revenue and profit growth rates have shown marginal improvement, with a sequential decline in net interest margin and overall stability in non-performing loans [1] Group 1: Financial Performance - Revenue and profit growth rates for China Merchants Bank have improved marginally in Q1 to Q3 of 2025 [1] - The net interest margin has decreased sequentially [1] - Overall non-performing loans remain stable [1] Group 2: Future Outlook - It is expected that with a lower base for net interest margin, the annual profit growth for China Merchants Bank in 2025 may continue to show slight recovery [1] Group 3: Asset Quality - As of the end of Q3 2025, the non-performing loan ratio for corporate loans decreased by 3 basis points to 0.75%, while the retail non-performing loan ratio increased by 1 basis point to 1.05% [1] - Forward-looking indicators show that the attention rate and overdue rate for retail loans increased by 4 basis points and decreased by 1 basis point, respectively, to 1.98% and 1.70% [1] Group 4: Investment Recommendation - The target price for China Merchants Bank is set at 52.00 CNY per share, corresponding to a price-to-book ratio of 1.20 for 2025, indicating a potential upside of 28% from the current price [1] - The rating is maintained at "Buy" [1]