Bank of RuiFeng(601528)2024-11-01 01:12Investment Rating - The report maintains a "Buy" rating for the company [6][11]. Core Views - The company achieved a revenue of 3.3 billion yuan in the first nine months of 2024, representing a year-on-year growth of 14.7%, which is the highest growth rate in its industry [6][7]. - The net profit attributable to shareholders for the same period was 1.44 billion yuan, also reflecting a year-on-year increase of 14.6% [6][7]. - The asset quality remains strong, with a non-performing loan (NPL) ratio stable at 0.97% and a provision coverage ratio increasing to 330% [6][11]. Financial Performance Summary - Total revenue (in million yuan) is projected to grow from 3,525.00 in 2024E to 4,824.82 in 2026E, with a compound annual growth rate (CAGR) of approximately 6.31% [5]. - The net profit attributable to shareholders is expected to increase from 1,990.39 million yuan in 2024E to 2,495.25 million yuan in 2026E, with a CAGR of 12.27% [5]. - The return on equity (ROE) is forecasted to rise from 11.41% in 2024E to 11.83% in 2026E [5]. Revenue and Profitability Drivers - Non-interest income saw a significant increase of 78% year-on-year, contributing to the revenue growth, with approximately 110 million yuan recognized from subsidies for small and micro enterprises [7][8]. - Interest income faced pressure but the decline is narrowing, with a year-on-year decrease of 1.3% in the first nine months of 2024 [7][9]. - The cost-to-income ratio improved, decreasing by 3.7 percentage points to 27%, which positively impacted profit growth [7]. Loan and Asset Quality - Loan growth accelerated slightly, with a year-on-year increase of 9.8% in the third quarter of 2024 [9]. - The company continues to strengthen its provision reserves, with a year-to-date annualized NPL generation rate of 0.4% [11]. - The company has maintained a low NPL ratio and a strong provision coverage ratio, indicating robust risk management [11].