Tianfeng Securities·2024-11-03 06:09Investment Rating - The report adjusts the investment rating to "Accumulate" with a target price of 5.45 yuan, indicating a potential upside of 12% from the current price of 4.88 yuan [5][17]. Core Views - The report highlights that the bank's profitability is recovering, with a year-on-year increase in net profit of 0.52% for the first three quarters of 2024, signaling positive momentum [1][3]. - The net interest margin is expected to stabilize, with a current level of 1.41%, influenced by adjustments in loan and deposit rates [1][8]. - The bank's asset quality remains robust, with a non-performing loan ratio of 1.26% and a provision coverage ratio of 198.9% [2][15]. Financial Performance Summary - For the first three quarters of 2024, the bank reported total revenue of approximately 478.3 billion yuan, a year-on-year increase of 1.64%, with net interest income of 336 billion yuan (YoY -4.81%) and non-interest income of 142.4 billion yuan (YoY +20.99%) [3][8]. - The bank's total interest-earning assets reached 329,718 billion yuan, up 1,780 billion yuan from the first half of 2024, with loans accounting for 63.4% of the total [2][14]. - The total interest-bearing liabilities increased to 297,855 billion yuan, reflecting a growth of 3,724 billion yuan from the first half of 2024 [2][14]. Profitability and Valuation - The report forecasts a net profit growth of 0.67%, 1.68%, and 5.72% for the years 2024, 2025, and 2026, respectively, with corresponding book values per share of 8.41, 9.31, and 10.13 yuan [3][17]. - The bank's price-to-earnings ratio is projected to be 6.00 for 2024, indicating a stable valuation relative to its earnings growth [4][18].