CCB(SH:601939) HTSC·2024-09-01 06:03Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 6.98 for H-shares and RMB 9.53 for A-shares [24][36]. Core Views - The company has shown a decline in net profit, operating income, and pre-provision operating profit for the first half of the year, with year-on-year changes of -1.8%, -3.6%, and -4.0% respectively [24]. - The annualized ROE and ROA for the first half of the year are 10.82% and 0.84%, reflecting a decrease of -1.13 percentage points and -0.08 percentage points year-on-year [24]. - The company declared an interim dividend of RMB 0.197 per share (before tax), with a payout ratio of 29.97% and an annualized dividend yield of 5.23% [24]. - The forecasted EPS for 2024-2026 is RMB 1.31, 1.33, and 1.38 respectively, with a projected BVPS of RMB 12.71 for 2024 [24]. - The company is expected to maintain a valuation premium due to the ongoing promotion of its "new finance" strategy, with target PB ratios of 0.75 for A-shares and 0.50 for H-shares [24]. Financial Performance Summary - For the first half of the year, total assets, loans, and deposits grew by 5.3%, 10.0%, and 3.9% respectively, compared to the previous quarter [25]. - The net interest margin for the first half of the year was 1.54%, down by 3 basis points from the first quarter of 2024 [25]. - Non-interest income increased by 2.1% year-on-year, while fee income decreased by 11.2% [26]. - The non-performing loan ratio and provision coverage ratio were 1.35% and 239% respectively, showing slight improvements [27]. Valuation Metrics - The company’s PE ratio is projected to be 5.74 for 2024, while the PB ratio is expected to be 0.59 [28]. - The dividend yield is forecasted to be 5.24% for 2024 [28]. - The core tier one capital adequacy ratio is expected to be 13.37% for 2024 [28].