Bank of Ningbo(SZ:002142) Orient Securities·2024-10-29 09:41Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 27.86 CNY per share, reflecting a 20% discount to the estimated price-to-book (PB) ratio of 0.92 for 2024 [4][2]. Core Insights - Revenue and profit growth have rebounded, with net interest income growth continuing to improve. As of Q3 2024, the company's revenue, pre-provision operating profit (PPOP), and net profit attributable to the parent company have increased year-on-year by 7.4%, 13.5%, and 7.0% respectively, compared to H1 2024 [1]. - Loan growth remains robust at around 20%, with corporate loans showing a high level of activity. As of Q3 2024, total asset growth has decreased by 1.8 percentage points to 14.9%, while loan growth has decreased by 1.0 percentage points to 19.6%, still outpacing total asset growth [1]. - Asset quality remains stable, with a slight decrease in the net generation rate of non-performing loans. As of Q3 2024, the non-performing loan ratio stands at 0.76%, unchanged from the previous quarter, while the annualized net generation rate of non-performing loans has decreased by 4 basis points to 1.16% [1]. Financial Performance Summary - The company forecasts net profit growth rates of 7.1%, 8.4%, and 9.0% for the years 2024, 2025, and 2026, respectively. Earnings per share (EPS) are projected to be 4.03 CNY, 4.37 CNY, and 4.78 CNY for the same years [2]. - The company's price-to-book (PB) ratios for 2024, 2025, and 2026 are estimated at 0.86X, 0.76X, and 0.68X, respectively, indicating a favorable valuation compared to historical averages [2]. - The report highlights that the company's net interest income is expected to grow significantly, with projections of 44.79 billion CNY, 49.12 billion CNY, and 55.64 billion CNY for the years 2024, 2025, and 2026 [6].