Tianfeng Securities·2024-11-03 10:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.75 CNY, indicating a potential upside of 20% from the current price of 4.78 CNY [6][4][21] Core Insights - The company has shown a steady increase in revenue and net profit, with total revenue for the first three quarters of 2024 reaching approximately 540.2 billion CNY, representing a year-over-year growth of 1.29% [2][10] - The net interest margin has stabilized at 1.45% for the first three quarters of 2024, suggesting a potential easing of margin pressure in the future [2][10] - Asset quality remains robust, with a non-performing loan ratio of 1.32% and a provision coverage ratio of 302.4% as of Q3 2024 [19][20] Financial Performance Summary - Revenue and net profit growth accelerated in 2024, with net profit reaching 214.4 billion CNY, a year-over-year increase of 3.38% [2][3] - The structure of revenue has shifted, with net interest income accounting for 81.04% of total revenue, while non-interest income grew by 2.69% to 102.4 billion CNY [2][10] - The company’s total interest-earning assets amounted to 427.8 billion CNY, reflecting a quarter-over-quarter increase of 3.9% [14][19] Asset and Liability Management - As of Q3 2024, the company’s interest-bearing liabilities totaled 391.6 billion CNY, up 4.2% from the previous half [14][19] - The liquidity coverage ratio has improved, indicating enhanced capacity to manage potential operational pressures, with ratios of 131.2%, 120.3%, and 126.7% over the three quarters [11][19] Profitability Forecast - The company is projected to achieve net profit growth of 2.56%, 3.16%, and 6.36% for the years 2024, 2025, and 2026, respectively [21][22] - The earnings per share (EPS) is expected to increase from 0.79 CNY in 2024 to 0.87 CNY by 2026 [22]