GOLDEN SUN SECURITIES·2024-10-30 09:47Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company's performance in Q3 shows a marginal improvement, with a return to profit growth for the first time this year, achieving a net profit growth of 0.8% in Q3 [2][9] - The overall financial health remains strong, with a stable asset quality and a low non-performing loan (NPL) ratio of 0.94% [3][4] - The company is expected to maintain its leading position in the industry, supported by a low-cost, low-risk, and high return on equity (ROE) model [9] Financial Performance Summary - Revenue for the first three quarters was CNY 252.7 billion, a year-on-year decrease of 2.9%, while net profit was CNY 113.2 billion, down 0.6% [2] - Net interest income decreased by 3.1% year-on-year, but the decline is narrowing compared to the first half of the year [2] - The net interest margin for Q3 was 1.97%, showing only a slight decrease from the previous quarter [2] Asset Quality Summary - As of September, the NPL ratio stood at 0.94%, with a coverage ratio of 432% [3] - The company reported a decrease in the generation of non-performing loans in Q3, with corporate NPL generation at CNY 2.24 billion, down from the previous quarter [3][4] Business Segment Performance - Wealth management revenue saw a significant decline of 27.6% year-on-year, primarily due to fee rate reductions and market volatility [9] - The total assets reached CNY 11.7 trillion, with loans amounting to CNY 6.76 trillion, reflecting a growth of 3.8% year-to-date [5] Future Outlook - The company is expected to continue its recovery throughout the year, with a positive outlook for the medium to long term [9] - Financial projections indicate a gradual improvement in revenue and profit growth rates over the next few years [10][11]