Tianfeng Securities·2024-09-05 00:40Investment Rating - The report upgrades the investment rating of the company to "Buy" with a target price of 8.84 yuan, corresponding to a price-to-book ratio of 0.65x for 2024 [5][2]. Core Insights - The company's revenue for the first half of 2024 is 132.3 billion yuan, a year-on-year decrease of 3.5%, with a net profit attributable to shareholders of 45.3 billion yuan, down 1.6% year-on-year [1][8]. - Interest income shows resilience with a growth of 2.24% year-on-year, while non-interest income declines by 12.15% [1][8]. - The net interest margin slightly increased by 2 basis points to 1.29% in the first half of 2024, supported by effective cost control [1][14]. - The non-performing loan (NPL) ratio stabilizes at 1.32%, with a provision coverage ratio of 204.8%, indicating improved asset quality [1][24]. Financial Performance - Revenue and Profitability: The company reported a revenue of 132.3 billion yuan in H1 2024, down 3.5% year-on-year, and a net profit of 45.3 billion yuan, down 1.6% year-on-year [1][8]. - Interest Income: Interest income grew by 2.24% year-on-year, amounting to approximately 84.2 billion yuan, while non-interest income fell by 12.15% [1][8]. - Cost Management: The average yield on interest-earning assets decreased by 11 basis points to 3.48%, while the cost of interest-bearing liabilities decreased by 9 basis points to 2.36% [1][14]. Asset Quality - Non-Performing Loans: The NPL balance is 109 billion yuan, with a ratio of 1.32%, showing a slight decrease from the previous period [1][22]. - Provisioning: The loan provision ratio increased to 2.7%, and the NPL coverage ratio rose to 204.8%, reflecting a stronger safety margin [1][24]. Shareholder Changes - The fourth largest shareholder, Hong Kong Central Clearing Limited, increased its stake by 0.01 percentage points to 10.39%, while the sixth largest shareholder reduced its stake by 0.14 percentage points [26].