Dongxing Securities·2024-09-05 04:00Investment Rating - The report maintains a "Strong Buy" rating for Postal Savings Bank of China (601658.SH) [2][11] Core Views - The bank's net interest margin shows strong resilience, and asset quality remains stable despite slight declines in revenue and net profit year-on-year [2][11] - The bank's revenue for the first half of 2024 was CNY 176.79 billion, a year-on-year decrease of 0.1%, while net profit attributable to shareholders was CNY 48.82 billion, down 1.5% year-on-year [2][3] - The annualized ROE was 11.43%, a decrease of 1.43 percentage points year-on-year, with a non-performing loan ratio of 0.84% and a provision coverage ratio of 325.61% as of June [2][11] Summary by Sections Revenue and Profitability - In H1 2024, net interest income increased by 1.8% year-on-year, although the growth rate decreased by 1.3 percentage points compared to the previous quarter [4] - The bank's interest margin was 1.91%, a slight decrease of 1 basis point from the previous quarter and a decline of 10 basis points from the previous year [4][16] Asset Quality - As of June, the non-performing loan ratio was 0.84%, a decrease of 1 basis point from the previous quarter, while the attention rate was 0.83% [11][18] - The bank's provision coverage ratio was 325.6%, which is higher than comparable state-owned banks [11] Growth and Strategy - The bank is focusing on retail banking and has established a solid customer base with nearly 40,000 outlets, emphasizing services for agriculture, small and micro enterprises, and inclusive finance [6][11] - The report forecasts net profit growth rates of 1.1%, 1.2%, and 2.7% for 2024, 2025, and 2026 respectively, with corresponding BVPS of CNY 8.53, 9.15, and 9.79 [11][12]