CCB(SH:601939) Ping An Securities·2024-09-02 23:30Investment Rating - The report maintains a "Recommended" rating for China Construction Bank (601939.SH) with a current stock price of 7.53 CNY [4][10]. Core Views - The report highlights that the narrowing decline in interest margins and overall stable asset quality are key factors for the bank's performance [8][12]. - The bank's half-year report for 2024 shows a revenue of 386 billion CNY, a year-on-year decrease of 3.6%, and a net profit attributable to shareholders of 164.3 billion CNY, down 1.8% year-on-year [12][18]. - The annualized weighted average ROE stands at 10.82% [12]. Summary by Relevant Sections Financial Performance - As of the end of the first half of 2024, total assets reached 40.3 trillion CNY, a year-on-year growth of 5.3%, with loans increasing by 10.0% and deposits by 3.8% [12][13]. - Net interest income decreased by 5.2% year-on-year, primarily due to a decline in interest margins, which narrowed to 1.54% [12][13]. - Non-interest income increased by 2.1% year-on-year, with significant growth in other non-interest income, which rose by 55.8% [12][13]. Asset Quality - The non-performing loan (NPL) ratio decreased to 1.35%, with a slight increase in retail loan NPLs to 0.84% [17][18]. - The bank's provision coverage ratio improved to 239% [17][18]. Future Outlook - The report projects EPS for 2024-2026 at 1.32, 1.36, and 1.43 CNY respectively, with corresponding year-on-year growth rates of -0.6%, 2.9%, and 5.2% [18][24]. - The bank's stock is currently trading at a price-to-book (P/B) ratio of 0.60x for 2024, indicating potential value [18][24].