Tai Ping Yang·2024-10-09 00:07Investment Rating - The report upgrades the investment rating of the company to "Buy" [1][4][7] Core Views - The company reported a total operating income of 132.35 billion yuan, a year-on-year decrease of 3.51%, and a net profit attributable to shareholders of 45.29 billion yuan, a year-on-year decrease of 1.63% [4] - The annualized weighted ROE stands at 9.29%, down by 0.87 percentage points year-on-year [4] - Interest income showed stable growth, while non-interest income was a major drag on revenue [4] - The loan structure has been optimized, and the net interest margin has rebounded quarter-on-quarter [4] - The company’s non-performing loan ratio decreased to 1.32%, with a provision coverage ratio of 204.82% [4] Summary by Sections Financial Performance - The company achieved an operating income of 132.35 billion yuan, down 3.51% year-on-year, and a net profit of 45.29 billion yuan, down 1.63% year-on-year [4] - Interest income was 84.23 billion yuan, up 2.24% year-on-year, while non-interest income was 48.11 billion yuan, down 12.15% year-on-year [4] - The company’s net interest margin was 1.29%, down 2 basis points year-on-year, but up 2 basis points from the previous quarter [4] Loan Structure and Asset Quality - The loan balance at the end of the reporting period was 8.27 trillion yuan, an increase of 3.90% from the end of the previous year [4] - The composition of loans includes corporate loans at 65.94%, personal loans at 30.91%, and bills at 3.15% [4] - The non-performing loan ratio decreased to 1.32%, while the provision coverage ratio increased to 204.82% [4] Future Projections - Projected operating income for 2024-2026 is 255.07 billion yuan, 260.40 billion yuan, and 269.34 billion yuan respectively [5] - Projected net profit for the same period is 91.50 billion yuan, 93.81 billion yuan, and 97.29 billion yuan respectively [5] - The projected book value per share (BVPS) for 2024-2026 is 15.43 yuan, 16.66 yuan, and 17.94 yuan respectively, with corresponding price-to-book (PB) ratios of 0.44, 0.41, and 0.38 [5]