Bank of RuiFeng(601528) 华创证券·2024-10-31 12:23Investment Rating - The report maintains a "Recommend" rating for Ruifeng Bank (601528) with a target price of 6.73 yuan, compared to the current price of 5.09 yuan [1] Core Views - Ruifeng Bank achieved double-digit growth in revenue and profit, with stable net interest margins and improved asset quality in Q3 2024 [1] - The bank's revenue growth remained around 15%, driven by scale growth, stable net interest margins, and high growth in intermediate business income [1] - Despite a slight slowdown in net profit growth due to increased provisioning, the bank's asset quality improved, with the non-performing loan ratio remaining flat at 0.97% and the provision coverage ratio increasing by 6 percentage points to 330% [1] Financial Performance - In the first three quarters of 2024, Ruifeng Bank achieved operating revenue of 3.322 billion yuan, a year-on-year increase of 14.7%, and net profit attributable to the parent company of 1.442 billion yuan, a year-on-year increase of 14.6% [1] - The bank's net interest margin (NIM) slightly increased by 1 basis point to 1.52% in Q3 2024, mainly due to a significant decline in liability costs [1] - The bank's loan growth rate increased by 0.98 percentage points to 9.85% in Q3 2024, driven by improved demand for corporate and retail loans [1] Asset Quality - The non-performing loan ratio remained flat at 0.97% in Q3 2024, while the provision coverage ratio increased by 6 percentage points to 330% [1] - The bank's asset quality improved, with the non-performing loan generation rate and the attention rate declining by 55 basis points and remaining flat at 0.33% and 1.56%, respectively [1] Future Outlook - The report forecasts that Ruifeng Bank's revenue growth will be 6.7%, 6.4%, and 10.8% in 2024, 2025, and 2026, respectively, while net profit growth will be 10.8%, 9.4%, and 10.0% in the same period [1] - The bank is expected to benefit from the rapid growth of the export economy in Shaoxing's Keqiao and Yuecheng districts, optimization of loan structure, and investment in rural commercial banks in other regions [1] Valuation - The report values Ruifeng Bank at 0.67x PB for 2025, corresponding to a target price of 6.73 yuan [1] - The bank's current valuation is only 0.51x PB for 2025, indicating potential upside [1]