Bank of RuiFeng(601528) Huaan Securities·2024-11-01 05:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a strong revenue growth trend, leading the listed banks with a year-on-year revenue increase of 14.67% and a net profit increase of 14.57% for the first three quarters of 2024 [1] - Non-interest income has significantly contributed to the overall performance, with a remarkable year-on-year growth of 73.87% in other non-interest business, primarily driven by a substantial increase in investment income [1][5] - The asset quality remains stable, with a non-performing loan ratio of 0.97% and a provision coverage ratio of 329.96%, indicating a solid safety cushion [4] Summary by Relevant Sections Financial Performance - For 1H24, the company maintained a high growth trend in both revenue and profit, with revenue and net profit growth rates of 14.67% and 14.57% respectively [1] - The company’s total assets, loans, and deposits grew by 9.88%, 9.51%, and 8.22% year-on-year in 3Q24, although the growth rates showed a slight slowdown compared to 1H24 [1][4] - The company’s net interest margin was 1.56% in 3Q24, slightly down from 1H24, but the decline in margin has narrowed over the past two quarters [1][4] Investment and Market Position - The company has a leading market share in the Shaoxing Keqiao area and has shown significant growth in other regions such as Yuecheng and Yiwu [5] - The company is well-positioned to benefit from the economic growth in Shaoxing Keqiao, with expectations of improved credit demand [5] - The company’s capital adequacy ratio is among the top tier of listed banks, which supports its growth and profitability [5] Future Outlook - The company is expected to maintain a robust growth trajectory, with projected revenue growth rates of 8.43%, 8.23%, and 7.96% for 2024-2026, and net profit growth rates of 12.45%, 10.44%, and 10.47% for the same period [5][7] - The company’s focus on small and micro retail customers is anticipated to mitigate risks associated with macroeconomic fluctuations [5]