Bank Of Jiangsu(600919) 长江证券·2025-01-27 03:09Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Insights - The company reported an annual revenue growth of 8.8% for 2024, with a significant quarterly growth of 18.5% in Q4. The net profit attributable to shareholders increased by 10.8% year-on-year, with a quarterly growth of 16.5% in Q4. The high growth in Q4 is attributed to a low base in Q4 2023 and expected gains from bond market investment income, alongside an anticipated narrowing of net interest margin decline and improved deposit costs [3][4][8]. - The year-end non-performing loan ratio remained stable at 0.89%, while the provision coverage ratio decreased by 1 percentage point to 350%. The non-performing loan net generation rate is expected to remain relatively stable in Q4 [3][4][8]. Summary by Sections Performance - The company's revenue accelerated in 2024, with a notable Q4 revenue growth of 18.5%. The annual revenue growth was supported by a low base effect and increased investment income from the bond market. The net profit growth remained stable compared to the previous quarter, with a significant increase in other comprehensive income [8][22]. Scale - Total assets grew by 16.1% year-on-year, with loans increasing by 10.7% and deposits by 12.8% compared to the beginning of the year. The retail loan demand is expected to remain weak, leading to tightened risk controls on consumer and business loans [8][22]. Interest Margin - The net interest margin is expected to narrow in Q4, with a significant improvement in funding costs. The estimated net interest margin for the first three quarters decreased by 2 basis points to 1.74%, while funding costs improved due to declining deposit costs [8][22]. Asset Quality - The asset quality is expected to remain stable, with the non-performing loan generation rate anticipated to stabilize in Q4. The retail loan non-performing rate increased slightly, but the overall asset quality for corporate loans is expected to remain strong [8][22]. Investment Recommendation - The company is expected to maintain stable growth in 2025, with a clear strategic plan focusing on developed economic regions. The current valuation is at 0.69 times the 2025 price-to-book ratio, indicating undervaluation, with a projected dividend yield of 5.6%, the highest among leading city commercial banks [8][22].