JRCB(SZ:002807) Haitong Securities·2024-09-19 03:10Investment Rating - The investment rating for Jiangyin Bank is "Outperform the Market" and is maintained [1]. Core Views - Jiangyin Bank's revenue for the first half of 2024 increased by 5.5% year-on-year, while net profit attributable to shareholders rose by 10.5%, indicating stable profitability and solid asset quality improvement [4]. - The bank's non-interest income growth and a decrease in loan impairment losses were the main contributors to the profit increase [4]. - The net interest margin for the first half of 2024 was 1.76%, up from 1.70% in the first quarter of 2024 [4]. - The non-performing loan ratio stood at 0.98% in the second quarter of 2024, slightly up by 1 basis point from the previous quarter, but stable compared to the end of 2023 [4]. - The provision coverage ratio improved to 435.25%, an increase of 10 percentage points from the previous quarter and 25.79 percentage points from the end of 2023 [4]. - Loan growth was robust, with a year-on-year increase of 9.7% in the second quarter of 2024, driven by a 10.5% increase in corporate loans [4]. - The bank's focus on supporting the manufacturing sector contributed to a 4.4% increase in manufacturing loans compared to the end of 2023, accounting for 19.4% of the loan growth [4]. - The bank's deposit growth was also steady, with a year-on-year increase of 7.3% [4]. Financial Performance Summary - Revenue (in million yuan) for 2024E is projected at 3,780, with a year-on-year growth of 9.38% in 2025E and 9.82% in 2026E [5]. - Net profit (in million yuan) for 2024E is estimated at 1,616, with growth rates of 5.27% in 2024E, 5.93% in 2025E, and 6.20% in 2026E [5]. - The average return on equity (ROE) is expected to be 12.15% in 2024E, declining to 11.60% in 2025E and 11.23% in 2026E [5]. - The bank's earnings per share (EPS) is projected to be 0.81 yuan in 2024E, increasing to 0.86 yuan in 2025E and 0.91 yuan in 2026E [5]. Valuation - The reasonable value range for Jiangyin Bank is estimated between 4.22 and 4.56 yuan, corresponding to a 2024 PE ratio of 5.22 to 5.65 times [4]. - The bank's 2024E PB valuation is set at 0.60 times, compared to 0.49 times for comparable companies [4].