HZBank(SH:600926) Haitong Securities·2024-09-01 07:43Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The company reported a year-on-year revenue growth of 7.3% in Q2 2024, with a net profit attributable to the parent company increasing by 19.0% in the same period. The non-performing loan ratio remained stable at 0.76%, indicating steady asset quality. The company is focusing on the growth of its technology, green finance, and small micro-business sectors [5][6]. - The company has strengthened its credit risk management, resulting in a decrease in non-performing loan ratios in key sectors compared to the end of 2023. The "Technology Innovation Engine" has served 21,700 technology enterprises, with a financing exposure of 77.9 billion yuan, reflecting a growth of 9.4% [5][6]. - The company’s loan growth was 14.7% compared to the end of 2023, while deposits grew by 6.9% in Q2 2024. The company is expected to maintain a robust growth trajectory in the coming years, with projected EPS of 2.61, 2.95, and 3.36 yuan for 2024-2026 [6][7]. Financial Summary - For H1 2024, the company reported a revenue increase of 5.4% and a net profit growth of 20.1%. The net interest margin for H1 2024 was 1.42%, down from 1.50% in 2023 [5][6]. - The company’s financial forecasts indicate a revenue of 32.93 billion yuan for 2024, with a year-on-year growth of 3.63%. The net profit is projected to be 11.68 billion yuan, reflecting a growth of 10.37% [7][16]. - The average return on equity (ROE) is expected to be 15.62% in 2024, with a projected decline to 15.59% in 2025 [7][16]. Valuation - The reasonable value range for the company is estimated to be between 15.98 and 17.52 yuan, based on the DDM model and PB-ROE model. This corresponds to a PE ratio of 6.12-6.71 for 2024, compared to a peer average of 4.43 [6][9].