Xin Lang Cai Jing·2025-11-07 00:26Core Insights - The company reported a revenue growth of 1.8% for the first three quarters of 2025, with a net profit growth of 1.9% [1] - Asset quality indicators have improved, with a non-performing loan (NPL) ratio of 1.26% at the end of Q3, down 5 basis points from the beginning of the year [4] Performance Summary - Revenue Growth: Interest income increased by 1.5% and non-interest income by 2.4%, indicating a recovery in fee-based income [2] - Profitability: Pre-tax profit grew by 3.2% due to a reduction in credit impairment provisions [2] - Asset Growth: Total assets grew by 4.0% and loans by 6.0% compared to the beginning of the year, driven by corporate lending [2] Interest Margin Analysis - Net interest margin for the first three quarters was 1.20%, with a slight decline of 1 basis point from the first half of the year [3] - The cost of interest-bearing liabilities improved, with a decrease of 6 basis points compared to the first half of the year [3] Asset Quality Overview - The NPL ratio improved to 1.26%, with a coverage ratio of 210%, marking a significant increase from earlier in the year [4] - Corporate loan quality remained stable, while retail loan NPLs increased, particularly in mortgages and small business loans [4] Investment Recommendation - The company’s stock is currently undervalued, with a price-to-book (PB) ratio of approximately 0.55x for A-shares and 0.48x for H-shares, the lowest among major banks [4] - The expected dividend yield is 4.6% for A-shares and 5.3% for H-shares, supporting a "buy" recommendation based on valuation recovery and stable dividends [4]