渝农商行：2024年中报点评：利润增速显著回升

Investment Rating - The investment rating for the company is "Buy" and is maintained [6][8]. Core Views - The company's net profit for the first half of 2024 (24H1) increased by 5.3% year-on-year, with a significant improvement of 16.1 percentage points compared to the first quarter of 2024 (24Q1) [2][3]. - Revenue decreased by 1.3% year-on-year, but the decline was less severe than in the previous quarter, indicating a narrowing of revenue contraction [2][3]. - The improvement in profit growth is attributed to the waning impact of impairment losses, with a 33% year-on-year increase in impairment losses for 24H1, although the growth rate has slowed compared to Q1 [3][4]. Summary by Sections Profitability Indicators - The net interest margin for 24Q2 decreased by 3 basis points to 1.58%, with the asset yield dropping by 13 basis points to 3.36% due to lower loan rates in the Chongqing region [4]. - The cost of liabilities improved by 9 basis points to 1.85%, reflecting a proactive reduction in high-cost deposits [4]. Asset Quality - As of the end of 24Q2, the non-performing loan (NPL) ratio remained stable at 1.19%, while the attention and overdue rates increased slightly compared to the beginning of the year [5]. - The increase in overdue loans is attributed to retail loan exposure and the ongoing resolution of real estate risks [5]. Earnings Forecast and Valuation - The forecast for net profit growth is 5.5% for 2024, 5.7% for 2025, and 6.1% for 2026, with corresponding book values per share (BPS) of 11.04, 11.79, and 12.59 yuan [6][11]. - The current price corresponds to a price-to-book (PB) ratio of 0.47 for 2024, with a target valuation of PB 0.55, leading to a target price of 6.07 yuan per share, indicating a potential upside of 17% [6][11].