Chongqing Rural Commercial Bank(601077) 东方证券·2024-08-29 08:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.80 CNY per share, based on a current stock price of 5.19 CNY [4]. Core Insights - Revenue and profit growth have rebounded, with year-on-year growth rates for revenue, PPOP, and net profit attributable to shareholders improving to -1.3%, 6.5%, and 5.3% respectively as of H1 2024 [1]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 1.19% and a slight decline in the provision coverage ratio to 360.3% [1]. - The bank's strategy focuses on regional development and industrial upgrades, which supports credit issuance, particularly in the public and manufacturing sectors [1]. Financial Performance Summary - The company's revenue for 2024 is projected at 27,587 million CNY, with a year-on-year growth of -1.3% [3]. - The net profit attributable to shareholders is expected to reach 11,588 million CNY in 2024, reflecting a growth of 6.3% [3]. - Earnings per share (EPS) for 2024 is forecasted at 1.00 CNY, with book value per share (BVPS) estimated at 10.95 CNY [2]. Asset Quality and Risk Management - The NPL ratio has remained stable at 1.19%, while the attention rate has increased by 27 basis points to 1.41% [1]. - The bank's provision coverage ratio has decreased slightly, indicating a robust buffer against potential loan losses [1]. Market Comparison - The average price-to-book (PB) ratio for comparable companies in 2024 is adjusted to 0.53, suggesting the company's current PB of 0.47 indicates potential undervaluation [2][6]. - The report highlights the bank's competitive position within the industry, with a lower decline in net interest margin compared to peers [1].