Wuxi Rural Commercial Bank(600908) Guoxin Securities·2024-09-09 09:30Investment Rating - The investment rating for the company is "Neutral" [3][6]. Core Views - The company's revenue growth has rebounded in the first half of the year, achieving a revenue of 2.557 billion yuan (YoY, +6.53%) and a net profit attributable to shareholders of 1.332 billion yuan (YoY, +8.25%) [1]. - The company maintains a strong asset quality with a non-performing loan ratio of 0.79% and a provision coverage ratio of 502.36% [1]. - The company is expected to have stable earnings growth, with projected net profits for 2024-2026 at 2.399 billion yuan, 2.590 billion yuan, and 2.806 billion yuan, corresponding to YoY growth rates of 9.0%, 8.0%, and 8.3% respectively [1][4]. Financial Performance Summary - In the first half of the year, total assets grew by 10.06% year-on-year to 250.1 billion yuan, with loans increasing by 10.82% to 152.6 billion yuan [1]. - The annualized weighted average ROE for the first half was 13.11%, a decrease of 0.27 percentage points year-on-year [1]. - The net interest margin was reported at 1.51%, a decline of 15 basis points year-on-year, leading to a slight decrease in net interest income by 2.19% to 1.690 billion yuan [1][4]. Earnings Forecast and Valuation - The diluted EPS is projected to be 1.12 yuan, 1.20 yuan, and 1.30 yuan for 2024, 2025, and 2026 respectively [2][4]. - The current stock price corresponds to a PE ratio of 4.6, 4.3, and 4.0 for the years 2024, 2025, and 2026, and a PB ratio of 0.53, 0.48, and 0.44 respectively [1][4].