EBSCN·2024-09-01 06:13Investment Rating - The report maintains an "Accumulate" rating for the company [1]. Core Views - The company demonstrated strong resilience in interest margins and stable asset quality in its 2024 semi-annual report, with a slight decline in revenue and net profit year-on-year [3][29]. - The bank's non-interest income grew by 6% year-on-year, driven primarily by net other non-interest income, which increased by 22.2% [6][29]. - The bank's overseas business contributed positively, with a year-on-year profit increase of 11% in the overseas commercial banking segment [8]. Summary by Relevant Sections Financial Performance - For the first half of 2024, the company reported operating income of 317.1 billion yuan, a year-on-year decrease of 0.7%, and a net profit attributable to shareholders of 118.6 billion yuan, down 1.2% year-on-year [3]. - The weighted average return on equity (ROE) was 9.58%, reflecting a decrease of 1.02 percentage points year-on-year [3]. Loan Structure - The bank's loan structure showed a strong performance in corporate loans, retail loans, and a reduction in bill discounting, with corporate loans increasing by 1.15 trillion yuan and retail loans by 150.6 billion yuan [5]. - Key areas such as manufacturing, small and micro enterprises, and private enterprises saw loan growth rates of 13.8%, 18.9%, and 9.4% respectively, all exceeding the overall loan growth rate of 5.9% [5]. Non-Interest Income - Non-interest income reached 90.3 billion yuan, with a year-on-year increase of 6%, and accounted for 28.5% of total revenue [6]. - The net commission and fee income was 42.9 billion yuan, down 7.6% year-on-year, while net other non-interest income surged to 47.4 billion yuan, up 22.2% [6]. Asset Quality - The non-performing loan (NPL) ratio stood at 1.24%, unchanged from the previous quarter and down 3 basis points from the beginning of the year [28]. - The bank maintained a strong provisioning stance, with a credit impairment loss of 60.6 billion yuan, remaining stable year-on-year [28]. Capital Adequacy - The bank's capital adequacy ratios showed a steady increase, with the core tier one capital ratio at 12.03% and the total capital adequacy ratio at 18.91% as of the end of Q2 2024 [11]. - The bank issued 120 billion yuan in subordinated debt and redeemed 40 billion yuan in perpetual bonds during the first half of the year [11]. Profitability Forecast - The report forecasts earnings per share (EPS) of 0.80, 0.83, and 0.86 yuan for 2024, 2025, and 2026 respectively, with the current stock price corresponding to a price-to-book (PB) ratio of 0.6, 0.56, and 0.52 [29].