Haitong Securities·2024-09-10 08:38Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6][8] Core Views - The report highlights that the company's net interest margin has increased quarter-on-quarter, with a significant decrease in the non-performing loan ratio for corporate loans. The overall asset quality remains stable, and there has been an increase in total credit issuance, particularly in inclusive loans, leading to the maintenance of the "Outperform the Market" rating [5][6][8] Financial Performance Summary - For the first half of 2024, the company's revenue decreased by 3.5% year-on-year, while net profit attributable to shareholders fell by 1.6%. The net interest income increased by 2.24 percentage points, accounting for 63.65% of total revenue. The net interest margin for the first half of 2024 was 1.29%, up from 1.27% in the previous quarter [5][6][7] - The company plans to distribute a mid-term dividend of 0.182 yuan per share (before tax) [5][6] Asset Quality and Loan Growth - The non-performing loan ratio slightly decreased to 1.32% in the second quarter of 2024, with the corporate loan non-performing ratio dropping by 11 basis points to 1.54% compared to the end of 2023. The company has intensified efforts to recover non-performing assets, resolving 29.59 billion yuan in non-performing loans in the first half of 2024 [5][6][7] - As of the second quarter of 2024, total loans increased by 6.1% year-on-year, with inclusive loans for small and micro enterprises growing by 15.74% compared to the end of 2023 [6][7][8] Earnings Forecast - The forecasted EPS for 2024-2026 is 1.13, 1.17, and 1.22 yuan, with net profit growth rates of -1.25%, 2.77%, and 3.92% respectively. The report estimates a reasonable value range of 7.54 to 7.83 yuan based on the DDM and PB-ROE models [6][7][8]