Ping An Securities·2024-09-02 07:30Investment Rating - The investment rating for the company is "Strong Buy" (maintained) [2][12] Core Views - The company reported a slight decline in revenue and net profit, with a year-on-year revenue decrease of 0.1% and a net profit decline of 1.5% [5][6] - The annualized net interest margin remains resilient at 1.91%, showcasing strong performance despite industry-wide margin compression [6][8] - The asset quality is stable, with a non-performing loan (NPL) ratio of 0.84% and a coverage ratio of 326%, indicating robust risk mitigation capabilities [8][9] Summary by Relevant Sections Financial Performance - For the first half of 2024, the company achieved operating income of 176.8 billion yuan, a slight decrease of 0.1% year-on-year, and a net profit attributable to shareholders of 48.8 billion yuan, down 1.5% year-on-year [5][6] - The total asset size reached 16.4 trillion yuan, reflecting an 8.5% year-on-year growth, with loans increasing by 10.7% and deposits by 11.8% [5][8] Revenue Breakdown - Interest income growth has slowed, with a year-on-year increase of 1.8%, while non-interest income saw a significant decline of 16.7% due to reduced income from agency insurance business [6][9] - The company has managed to control costs effectively, with credit impairment losses decreasing by 16.6% year-on-year [6][9] Asset Quality - The NPL ratio remained stable at 0.84%, with a slight increase in the overdue rate to 1.06% [8][9] - The company maintains a high provision coverage ratio, ensuring strong risk absorption capacity [8][9] Future Outlook - The company is expected to maintain its earnings forecasts for 2024-2026, with projected EPS of 0.88, 0.93, and 0.98 yuan respectively, indicating a steady growth trajectory [8][9] - The stock is currently trading at a price-to-book (P/B) ratio of 0.56x for 2024, suggesting potential undervaluation relative to its strong asset quality and customer base [8][9]