Bank of Chengdu(601838) 国泰君安·2024-08-28 01:23Investment Rating - Maintains an "Overweight" rating with a target price adjustment to 18.65 RMB [2][5] Core Views - The performance of the company in the first half of 2024 met expectations, with revenue and net profit growth slowing due to a high base in Q2 2023 [2] - The company is located in a key region with strong credit demand and leading scale growth among peers [3] - The company is actively developing real business, retail consumer loans, and wealth management while consolidating its traditional advantages in government finance [3] - Adjusted net profit growth forecasts for 2024-2026 are 13.0%, 14.1%, and 14.6%, respectively, with BVPS estimates of 19.63, 22.49, and 25.77 RMB per share [3] Financial Performance - Q2 2024 revenue increased by 2.5% YoY, with net interest income up 3.8% YoY, supported by a 25% growth in scale [3] - Net interest margin (NIM) declined by 34 bps YoY and narrowed by 14 bps QoQ due to weaker credit demand and lower mortgage rates [3] - Net fee income and net other non-interest income grew by 43.1% and 23.4%, respectively, driven by rapid growth in wealth management business [3] - Wealth management scale reached 82.4 billion RMB, a 23.6% YoY increase, contributing to a 58.5% YoY growth in wealth management income in H1 2024 [3] - Credit impairment decreased by 33% YoY, leading to an 8.8% increase in net profit [3] Asset Quality - Non-performing loan (NPL) ratio remained stable at 0.66%, but forward-looking indicators showed an increase in the attention rate by 4 bps to 0.45% [3] - NPL formation rate rose by 13 bps to 0.29% in H1 2024, with higher NPL ratios in regions outside Chengdu and industries like construction and wholesale retail [3] - Provision coverage ratio stood at 496%, indicating a solid safety cushion [3] Loan and Deposit Growth - Loan growth slowed in Q2 2024 but still achieved a 14.6% YoY increase, with corporate loans contributing 93.4% of the total loan growth [3] - Deposit growth also slowed, with a 22.8% YoY increase, and the trend of deposit termization continued, partially offsetting the impact of interest rate cuts [3] Valuation and Market Data - Current price is 14.96 RMB, with a 52-week price range of 10.89-16.16 RMB [6] - Total market capitalization is 57,057 million RMB, with total shares outstanding of 3,814 million [6] - Core Tier 1 capital adequacy ratio is 8.17% [7] Financial Projections - Revenue is projected to grow from 23,321 million RMB in 2024 to 28,475 million RMB in 2026, with net profit increasing from 13,192 million RMB to 17,249 million RMB [11] - EPS is expected to rise from 3.38 RMB in 2024 to 4.45 RMB in 2026, with BVPS increasing from 19.63 RMB to 25.77 RMB [11]