Haitong Securities·2024-09-02 09:09Investment Rating - The investment rating for the company is "Outperform the Market" [9][42]. Core Views - The company reported a year-on-year revenue decline of 3.57% and a net profit decline of 1.80% in the first half of 2024, with a marginally reduced profit decline of 1.4% in the second quarter [29]. - The company is optimizing its asset structure while maintaining a loan growth rate of over 10% year-on-year, with a significant reduction in interbank assets by 25% [29]. - The company has seen a stable non-performing loan generation situation, with a decrease in the proportion of attention loans [26]. Financial Performance Summary - The company’s net interest income growth rate is projected to be 1.69% in 2023, with a slight decline in non-interest income growth [30]. - The cost-to-income ratio is expected to be 27.29% in 2023, improving to 23.00% by 2026 [30]. - The company’s return on average assets (ROAA) is projected to be 0.90% in 2023, decreasing slightly in the following years [30]. Valuation Metrics - The company’s estimated EPS for 2024-2026 is projected to be 1.32, 1.39, and 1.45 yuan respectively, with a net profit growth rate of 0.75%, 5.25%, and 3.97% [42]. - The reasonable value range for the company is estimated between 7.21 and 8.27 yuan, corresponding to a PE ratio of 5.46-6.26 times for 2024 [42]. - The company’s price-to-book (PB) ratio for 2024E is estimated at 0.65 times, compared to a comparable company average of 0.57 times [42].