Ping An Securities·2024-10-31 04:00Investment Rating - The investment rating for the company is "Strongly Recommended" [1][13]. Core Views - The company's profit growth has turned positive, with a slight increase in net profit by 0.2% year-on-year, driven by a recovery in revenue and a reduction in agency fees [5][9]. - The annualized weighted average ROE stands at 11.8%, indicating stable profitability despite challenges in the interest margin [4][6]. - The total asset scale reached 16.7 trillion yuan, growing by 9.3% year-on-year, with loans and deposits increasing by 9.5% and 11.2% respectively [4][6]. Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company achieved operating income of 260.3 billion yuan, a year-on-year increase of 0.1%, and a net profit attributable to shareholders of 75.8 billion yuan, up 0.2% year-on-year [4][5]. - The net interest income grew by 1.5% year-on-year, while non-interest income decreased by 6.0% [5][10]. Asset Quality - The non-performing loan (NPL) ratio slightly increased to 0.86%, with the NPL generation rate rising to 0.79% [8][11]. - The provision coverage ratio remains high at 302%, indicating a stable risk absorption capacity [8][11]. Future Outlook - The company is expected to maintain a robust customer base and competitive advantages in retail banking, with projected EPS for 2024-2026 at 0.88, 0.93, and 0.98 yuan respectively [9][11]. - The stock is currently trading at a PB of 0.62x for 2024, suggesting potential upside based on the company's solid fundamentals and asset quality [9][11].