SRCB(SH:601825)2024-10-28 02:41Investment Rating - The report maintains a "Recommended" investment rating for the company [1]. Core Views - The company's performance shows marginal improvement with a revenue of 20.484 billion yuan for the first nine months of 2024, a year-on-year increase of 0.34%, and a net profit attributable to shareholders of 10.485 billion yuan, up 0.81% year-on-year [2]. - The company has successfully reduced deposit costs, with the interest-bearing deposit rate decreasing by 24 basis points compared to the end of the previous year [2]. - The company has a strong focus on technology and green loans, with significant growth in these areas, indicating a clear characteristic of innovation finance [2][3]. - The asset quality remains stable with a non-performing loan ratio of 0.97%, and the capital adequacy ratio is solid, with a core Tier 1 capital ratio of 14.51% [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 20.484 billion yuan, with a year-on-year growth of 0.34%. The net profit attributable to shareholders was 10.485 billion yuan, reflecting a year-on-year increase of 0.81% [2]. - The annualized weighted average ROE was 11.87%, a decrease of 1.16 percentage points year-on-year [2]. Income Sources - The net interest income for the first nine months of 2024 was 15.232 billion yuan, down 3.08% year-on-year, with an annualized net interest margin of 1.48%, a decline of 8 basis points from the first half of 2024 [2]. - Non-interest income reached 5.252 billion yuan, a year-on-year increase of 11.76%, primarily driven by a significant rise in investment income, which grew by 67.37% [2]. Asset Quality and Capital Adequacy - The non-performing loan ratio stood at 0.97%, unchanged from the end of the previous year, while the coverage ratio was 364.98%, down 40 percentage points year-on-year [3]. - The core Tier 1 capital adequacy ratio improved by 1.19 percentage points to 14.51% as of September 2024, indicating a strong capital position [3]. Investment Recommendations - The company is well-positioned in the economically developed Yangtze River Delta region, with a strong emphasis on serving key sectors of the real economy and a notable focus on retail financial strategies [3]. - The report forecasts BVPS for 2024-2026 to be 12.54 yuan, 13.49 yuan, and 14.46 yuan, respectively, with corresponding PB ratios of 0.63X, 0.59X, and 0.55X [3].