QILU BANK(SH:601665) ZHONGTAI SECURITIES·2024-07-23 06:00Investment Rating - The report maintains an "Increase" rating for Qilu Bank [3][4][10] Core Insights - Qilu Bank's revenue and profit growth remain high, with a cumulative revenue increase of 5.5% year-on-year in 1H24 and a net profit increase of 17.0% [4][6] - The bank's credit growth outperformed the industry average, with new loans of 26.4 billion yuan in the first half of the year, representing a 62% increase compared to the previous year [4][6] - Asset quality continues to improve, with a non-performing loan ratio of 1.24% and a provision coverage ratio of 309.25% [6][8] Summary by Sections Financial Performance - Revenue (in million yuan): - 2022: 11,052 - 2023: 11,940 - 2024E: 12,575 - 2025E: 13,254 - 2026E: 13,915 - Net Profit (in million yuan): - 2022: 3,587 - 2023: 4,234 - 2024E: 4,886 - 2025E: 5,516 - 2026E: 6,229 - Earnings per Share (in yuan): - 2022: 0.78 - 2023: 0.90 - 2024E: 1.04 - 2025E: 1.17 - 2026E: 1.32 [3][4][9] Credit and Deposit Growth - New loans in 1H24 totaled 26.4 billion yuan, a year-on-year increase of 4.49 billion yuan, with a quarterly increase of 21% in Q2 compared to the previous year [4][6] - Total deposits increased by 9.1% year-on-year, with a quarterly increase of 20.5 billion yuan in Q2, which is 9.6 billion yuan more than the same period last year [6][7] Asset Quality - The non-performing loan ratio improved to 1.24%, with a provision coverage ratio of 309.25% and a loan-to-provision ratio of 3.83% [6][8] - The bank's asset quality has been supported by significant provisions in the past, ensuring ample profit release space [8][9] Valuation Metrics - Projected Price-to-Earnings (P/E) ratios: - 2024E: 4.32 - 2025E: 3.82 - 2026E: 3.39 - Projected Price-to-Book (P/B) ratios: - 2024E: 0.57 - 2025E: 0.51 - 2026E: 0.46 [3][9]