Huachuang Securities·2024-08-29 09:11Investment Rating - The report maintains a "Recommended" rating for CITIC Bank (601998) with a target price of 7.64 CNY [2][3]. Core Views - The net interest margin has stabilized and increased, with a mid-term dividend payout ratio of 29.2% [3]. - The bank's revenue for the first half of 2024 reached 109.019 billion CNY, a year-on-year increase of 2.68%, while net profit attributable to shareholders decreased by 1.6% year-on-year [3]. - The report highlights a slowdown in loan growth and a decline in non-interest income, impacting overall revenue growth [3]. - The bank's asset quality remains stable, with a slight increase in the non-performing loan ratio to 1.19% [3]. Financial Performance Summary - Revenue and Profitability: - Total revenue for 2024 is projected at 206.976 billion CNY, with a growth rate of 0.52% [9]. - Net profit for 2024 is estimated at 67.933 billion CNY, reflecting a growth rate of 1.37% [9]. - Earnings Per Share (EPS): - EPS for 2024 is projected at 1.25 CNY, with a price-to-earnings (P/E) ratio of 5.14 [9]. - Net Interest Margin: - The net interest margin is expected to be 1.59% in 2024, down from 1.65% in 2023 [10]. - Dividend: - The mid-term dividend per share is projected at 0.1847 CNY, with a dividend yield of 5.5% based on the closing price on August 28 [3]. Asset Quality Summary - The non-performing loan ratio is projected to remain stable at around 1.18% for 2024 [10]. - The provision coverage ratio is expected to be 200.63% in 2024, indicating a strong buffer against potential loan losses [10]. Investment Outlook - The report suggests that CITIC Bank's revenue growth is expected to recover, with projected growth rates of 2.16% and 3.41% for 2025 and 2026, respectively [3][9]. - The bank's strategic focus on wealth management, asset management, and comprehensive financing is expected to yield positive results [3].