BANK OF QINGDAO(002948)2024-10-21 00:30Investment Rating - The report assigns a "Buy" rating for Qingdao Bank, indicating an expected relative price increase of over 15% compared to the CSI 300 index in the next six months [6][7]. Core Insights - Qingdao Bank's 2024 mid-year report shows a revenue of 7.128 billion yuan, a year-on-year increase of 11.98%, and a net profit attributable to shareholders of 2.641 billion yuan, up 13.07% year-on-year [4]. - The bank's loan balance reached 324.394 billion yuan by the end of H1 2024, reflecting an 8.10% increase from the end of the previous year, with strong growth in corporate loans [4]. - The net interest margin remained stable at 1.77%, with a year-on-year increase of 8 basis points, indicating a stabilization of profit margins [4]. - Non-interest income saw a significant increase of 54.80% year-on-year, driven by strategic investments in public funds and favorable conditions in the bond market [4]. - The bank's asset quality improved, with a non-performing loan ratio of 1.17% and a provision coverage ratio of 234.43% as of H1 2024 [4]. Summary by Sections Financial Performance - Revenue for 2024 is projected at 13.451 billion yuan, with a growth rate of 7.85% [5]. - Net profit for 2024 is estimated at 3.985 billion yuan, reflecting a growth rate of 12.31% [5]. - The bank's book value per share (BVPS) is expected to be 7.31 yuan in 2024, with a price-to-book (PB) ratio of 0.50 [5]. Loan Structure and Quality - Corporate loans increased by 12.22% year-on-year, with significant growth in key sectors such as technology and green finance [4]. - Retail loans decreased by 1.37%, with specific declines in mortgage and consumer loans [4]. - The bank's non-performing loan ratio for corporate loans improved to 0.92%, while the retail loan non-performing ratio increased to 1.95% [4]. Capital Adequacy - As of H1 2024, the core tier one capital adequacy ratio was 9.07%, reflecting a 0.65 percentage point increase from the previous year [4].