CNCB(601998) 华创证券·2025-03-12 00:25Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 7.95 CNY / 6.63 HKD [2][10][12] Core Views - CITIC Bank has strengthened its collaborative advantages and achieved balanced development, with breakthroughs in retail banking [2][10] - The bank's asset quality is gradually improving as it clears existing risks, and its financial performance is showing signs of recovery [10][12] - The bank's strategic focus on retail banking is expected to continue, enhancing its overall business growth potential [10][12] Company Research Summary Company Background - CITIC Bank, established in 1987, is one of the earliest commercial banks in China and has a strong background in cross-border finance due to its ties with CITIC Group [17][39] - The bank benefits from a comprehensive financial service ecosystem provided by CITIC Group, which includes various financial licenses and extensive industrial coverage [27][39] Collaborative Advantages - The establishment of CITIC Financial Holdings in 2022 has further enhanced the bank's collaborative capabilities, allowing for better resource sharing and customer service [9][24] - The bank has developed a two-dimensional collaborative advantage: internal collaboration among financial subsidiaries and collaboration with industrial sectors to mitigate risks [24][37] Risk Management - Since 2012, the bank has focused on risk control, particularly in real estate lending, leading to a reduction in non-performing loans [10][12] - The bank has actively reduced its exposure to real estate loans and improved its risk management practices, resulting in a decline in non-performing loan ratios [10][12] Business Development - CITIC Bank has shifted its strategic focus from corporate banking to a more balanced approach that includes significant retail banking initiatives [10][12] - The bank's retail business has shown substantial growth, particularly in retail loans, deposits, and wealth management services [10][12] Financial Performance - The bank's revenue growth is expected to rebound, with projections indicating a recovery in net interest margins and overall asset quality improvement [10][12] - Financial forecasts suggest a gradual increase in revenue and net profit over the next few years, with a focus on maintaining a stable dividend payout ratio [11][12] Investment Logic - The bank's solid corporate client base, successful retail transformation, and improving asset quality present a favorable investment opportunity [10][12] - The current stock price reflects a price-to-book ratio that is below historical averages, indicating potential for upward movement [10][12]