Bank of RuiFeng(601528) 华创证券·2024-07-18 23:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 6.6 CNY, indicating a potential upside from the current price of 4.93 CNY [17][29]. Core Insights - The company achieved a revenue of 2.174 billion CNY in the first half of 2024, reflecting a year-on-year growth of 14.9%. The net profit attributable to shareholders reached 843 million CNY, marking a 15.5% increase [15][17]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio holding steady at 0.97% and a provision coverage ratio increasing to 323.8% [15][17]. - The report anticipates continued high growth in revenue and profit, projecting a revenue growth rate of 6.71% for 2024 and net profit growth of 11.07% for the same year [15][29]. Financial Performance Summary - Revenue: The company reported a total revenue of 3.803 billion CNY in 2023, with a year-on-year growth of 7.88% [3][31]. - Net Profit: The net profit attributable to shareholders was 1.727 billion CNY in 2023, reflecting a growth of 12.98% [3][31]. - Key Ratios: The net interest margin stood at 1.72%, with a loan yield of 4.82% and a cost-to-income ratio of 34.70% [3][10]. Asset Quality Metrics - NPL Ratio: The non-performing loan ratio was reported at 0.97%, indicating stable asset quality [15][36]. - Provision Coverage Ratio: The provision coverage ratio improved to 323.8%, suggesting strong risk management practices [15][36]. Future Outlook - The bank is expected to benefit from a recovering economy, with anticipated growth in credit demand, particularly in the textile sector during the upcoming peak season [15][17]. - The report projects revenue growth rates of 6.71%, 10.57%, and 14.48% for the years 2024, 2025, and 2026, respectively, alongside net profit growth rates of 11.07%, 11.36%, and 13.46% for the same periods [15][31].