QILU BANK(SH:601665) ZHONGTAI SECURITIES·2024-07-23 06:02Investment Rating - The report maintains an "Accumulate" rating for Qilu Bank with a market price of 4.48 CNY [2][9]. Core Insights - Qilu Bank's revenue and profit growth remain robust, with a 5.5% year-on-year increase in revenue for the first half of 2024 and a 17.0% increase in net profit [3][4]. - The bank's asset quality is improving, with a non-performing loan ratio of 1.24% and a provision coverage ratio of 309.25% as of mid-2024 [6][7]. - The bank is effectively leveraging local economic policies to enhance its competitive position in the market [8]. Summary by Relevant Sections Financial Performance - Revenue (in million CNY) is projected to grow from 11,940 in 2023 to 12,575 in 2024, with a year-on-year growth rate of 5.31% [2]. - Net profit (in million CNY) is expected to increase from 4,234 in 2023 to 4,886 in 2024, reflecting a growth rate of 15.40% [2]. - Earnings per share (EPS) is forecasted to rise from 0.90 in 2023 to 1.04 in 2024 [2]. Asset Quality - The non-performing loan ratio has improved to 1.24%, with a provision coverage ratio of 309.25% [6][7]. - The bank's provision for loan losses is at 3.83%, indicating a strong buffer against potential loan defaults [6][7]. Loan and Deposit Growth - Qilu Bank's new loans for the first half of 2024 totaled 26.4 billion CNY, which is 4.49 billion CNY more than the same period in 2023 [3][5]. - Total deposits increased by 20.5 billion CNY in the second quarter of 2024, a rise of 9.1% year-on-year [5][6]. Valuation Metrics - Projected price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 4.32, 3.82, and 3.39, respectively [8]. - Projected price-to-book (P/B) ratios for the same years are 0.57, 0.51, and 0.46 [8].