Bank of RuiFeng(SH:601528) Guoxin Securities·2024-08-28 03:48Investment Rating - The investment rating for the company is "Outperform the Market" [3][6]. Core Views - The company has maintained good growth in performance, with a revenue of 2.174 billion yuan in the first half of 2024, representing a year-on-year increase of 14.9%, and a net profit attributable to shareholders of 843 million yuan, up 15.4% year-on-year [1]. - The growth in performance is attributed to two main factors: a significant increase in non-interest income, which rose by 94.4% year-on-year, and a negative income tax expense due to deferred tax benefits [1]. - The company has a stable asset quality with a non-performing loan ratio of 0.97% and an improved provision coverage ratio of 324% [1]. Financial Performance Summary - Revenue and Profit: The company achieved a revenue of 2.174 billion yuan in H1 2024, with a net profit of 843 million yuan, reflecting a year-on-year growth of 14.9% and 15.4% respectively [1]. - Non-Interest Income: Non-interest income saw a substantial increase of 94.4% year-on-year, primarily driven by higher investment income [1]. - Loan Growth: Total loans reached 1.217 billion yuan, growing by 7.1% year-to-date, with corporate loans and personal operating loans increasing by 12.9% and 8.0% respectively [1]. - Asset Quality: The non-performing loan ratio remained stable at 0.97%, with a provision coverage ratio of 324%, indicating strong asset quality management [1]. Earnings Forecast and Valuation - The company forecasts net profits of 1.94 billion yuan, 2.19 billion yuan, and 2.51 billion yuan for 2024, 2025, and 2026 respectively, with corresponding year-on-year growth rates of 12.1%, 12.9%, and 14.9% [2][4]. - The current stock price corresponds to a PE ratio of 4.9x for 2024, 4.3x for 2025, and 3.8x for 2026, indicating that the valuation is at a low level [1][4].