Bank of Ningbo(SZ:002142) Haitong Securities·2024-09-03 00:40Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][5][6] Core Views - The company's revenue for the first half of 2024 (24H1) increased by 7.13% year-on-year, with a net profit attributable to the parent company rising by 5.42%. The strong growth in net interest income has accelerated revenue growth without relying on investment income [5][6] - The average cost of interest-bearing liabilities is expected to reach a turning point, with the average cost rate at 2.12%, down 3 basis points from 2023. The average deposit cost rate decreased by 5 basis points to 1.96% [5][6] - The non-performing loan ratio remained stable at 0.76% as of the end of Q2 2024, with overdue loans slightly decreasing to 0.92% compared to the end of 2023 [6][19] Summary by Relevant Sections Financial Performance - 24H1 net interest income increased by 14.75% year-on-year, driven by a robust growth in loan and advance average daily balances, which rose by 22.62% year-on-year [5][6] - The company’s total revenue is projected to reach 57.88 billion yuan in 2024, with a year-on-year growth of 8.93% [7][19] Profitability Forecast - The forecasted EPS for 2024-2026 is 4.07, 4.41, and 4.75 yuan, with net profit growth rates of 8.21%, 8.07%, and 7.68% respectively [6][19] - The reasonable value based on the DDM model is estimated at 27.38 yuan, while the comparable valuation method gives a reasonable value of 26.33 yuan, leading to a valuation range of 26.33-27.38 yuan [6][19] Asset Quality - The company maintains a stable non-performing loan ratio and a provision coverage ratio of 461.04% in 2023, indicating strong asset quality management [19][20]