Ping An Securities·2024-07-15 04:00Investment Rating - The report assigns a "Recommended" rating to the company, indicating a positive outlook for investment based on its performance and strategic initiatives [23]. Core Viewpoints - The report highlights that China Construction Bank (CCB) is a leading state-owned bank with a strong focus on transforming its business model through the "New Financial Action" strategy, which includes areas such as inclusive finance, housing leasing, and financial technology [2][23]. - CCB's asset and loan sizes reached 39.7 trillion yuan and 25.0 trillion yuan respectively by Q1 2024, ranking third and second among listed state-owned banks [10][34]. - The bank's housing leasing fund reached 11.9 billion yuan by the end of 2023, with corporate housing leasing loans growing by 296% since the end of 2021, showcasing its first-mover advantage in the current rental market [2][23]. Summary by Sections Company Overview - CCB has evolved from a specialized bank focused on infrastructure to one of the largest comprehensive commercial banks in China, benefiting from a stable and efficient operational strategy [10][34]. - The bank's history includes significant reforms and a transition to a modern commercial banking model since its establishment in 1954 [30][34]. Client Base and Business Foundation - CCB has a solid and stable client base, with personal and corporate customers growing by 2.44% and 15.7% year-on-year as of the end of 2023 [41][64]. - The bank operates nearly 15,000 branches, providing extensive coverage and support for its diverse customer base [63][65]. Strategic Initiatives - The "New Financial Action" strategy launched in 2019 aims to enhance asset structure and drive growth in key areas, including retail loans and financial technology [2][23]. - CCB's commitment to digital transformation and financial technology is expected to improve asset utilization efficiency and support business expansion [2][23]. Financial Performance and Valuation - CCB's projected earnings per share (EPS) for 2024-2026 are 1.32, 1.36, and 1.43 yuan, with corresponding year-on-year growth rates of -0.6%, +2.9%, and +5.2% [23]. - The bank's dividend yield is estimated at 5.43%, making it an attractive option for investors seeking stable returns in a low-risk environment [23].