ZRCBANK(SZ:002839) Guoxin Securities·2024-08-28 10:04Investment Rating - The investment rating for Zhangjiagang Bank is "Neutral" [3][6]. Core Views - The bank's profit growth has improved, with a year-on-year revenue increase of 7.35% to 2.561 billion yuan and a net profit increase of 9.29% to 946 million yuan in the first half of the year [1]. - The bank's total assets grew by 8.23% year-on-year to 216.718 billion yuan, with loans increasing by 11.66% to 135.845 billion yuan [1]. - The bank's net interest margin is reported at 1.67%, with a slight decrease of 8 basis points from the previous quarter, primarily due to a decline in asset yield [1]. - Non-performing loan ratio remains low at 0.94%, with a provision coverage ratio of 423.71% [1]. Financial Performance Summary - Revenue for 2024 is projected at 4.831 billion yuan, with a year-on-year growth of 6.4% [2]. - Net profit for 2024 is estimated at 1.885 billion yuan, reflecting a growth of 5.5% [2]. - The diluted earnings per share (EPS) for 2024 is expected to be 0.87 yuan [2]. - The bank's return on equity (ROE) is projected to be 12.1% for 2024 [4]. Asset Quality Indicators - The non-performing loan rate is expected to remain stable at 0.94% for 2024 [4]. - The provision coverage ratio is projected to decrease slightly to 399% by 2026 [4]. - The bank's credit cost ratio is estimated at 1.10% for 2024 [4]. Valuation Metrics - The price-to-earnings (PE) ratio is projected to be 4.5x for 2024, decreasing to 3.8x by 2026 [2][4]. - The price-to-book (PB) ratio is expected to be 0.51x for 2024, declining to 0.42x by 2026 [2][4].