SRCB(SH:601825) GF SECURITIES·2024-11-13 12:22Investment Rating - The investment rating for the company is "Buy" with a current price of 7.90 CNY and a reasonable value of 9.25 CNY [2]. Core Insights - The company reported a steady performance in Q3 2024, with revenue, PPOP, and net profit attributable to shareholders growing by 0.3%, -3.3%, and 0.8% year-on-year, respectively. The growth rates showed slight improvements compared to the first half of 2024 [2][3]. - Key highlights include a rebound in loan growth, particularly in mortgage loans, which saw a quarterly increase of 1.307 billion CNY in Q3 2024, contributing 17.56% to total loan growth [2][3]. - Non-interest income showed significant growth, with a year-on-year increase of 32.7%, driven mainly by investment income, which rose by 67.37% [2][3]. Financial Performance Summary - For the first three quarters of 2024, the company experienced a year-on-year revenue growth of 0.3%, while PPOP and net profit attributable to shareholders decreased by 3.3% and increased by 0.8%, respectively [2][3]. - The company's total assets grew by 7.91% year-on-year, with loan and deposit growth rates of 6.02% and 8.86%, respectively [6][12]. - The non-performing loan (NPL) ratio remained stable at 0.97%, with a provision coverage ratio of 364.98%, indicating solid asset quality [2][3]. Profitability and Valuation - The forecast for net profit growth is 1.6% and 3.3% for 2024 and 2025, respectively, with EPS projected at 1.28 CNY and 1.32 CNY [2][3]. - The current price corresponds to a PE ratio of 6.2X for 2024 and 6.0X for 2025, with a PB ratio of 0.6X for both years, suggesting the stock is undervalued based on historical PB averages [2][3].