CM BANK(SH:600036) Huachuang Securities·2025-03-26 14:45Investment Rating - The report maintains a "Recommended" rating for China Merchants Bank (招商银行) with a target price of 52.9 CNY [2][10]. Core Views - The bank's solid deposit base and value banking advantages are reinforced, with a 2024 revenue of 337.49 billion CNY, a slight decrease of 0.48% year-on-year, and a net profit of 148.39 billion CNY, reflecting a growth of 1.22% year-on-year [2][10]. - The bank's performance shows resilience, with a significant recovery in net interest income and non-interest income in Q4 2024, indicating a positive trend in profitability [10]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.95% and a provision coverage ratio of 412% [10]. Summary by Sections Financial Performance - In 2024, the bank achieved total revenue of 337.49 billion CNY, with a year-on-year growth rate of -0.48%. The net profit attributable to shareholders was 148.39 billion CNY, with a year-on-year growth of 1.22% [9]. - The bank's Q4 performance showed a revenue increase of 7.5% year-on-year and a net profit increase of 7.6% year-on-year [2][10]. Income Structure - The bank's net interest income decreased by 1.58% year-on-year, while non-interest income from other sources increased by 34.13% [10]. - The wealth management fee income showed a marginal improvement, with a decline of 22.7% year-on-year, indicating a gradual recovery from previous policy impacts [10]. Asset Quality - The NPL ratio stood at 0.95%, with a slight increase of 1 basis point quarter-on-quarter. The provision coverage ratio decreased by 20 percentage points [10]. - The bank's non-performing loan generation rate was 1.05% for the year, with a slight increase of 2 basis points year-on-year [10]. Market Position - The bank's retail wealth management assets under management (AUM) reached nearly 15 trillion CNY, growing by 12.05% year-on-year [10]. - The bank's corporate financing total reached 6.2 trillion CNY, with a significant portion coming from traditional financing [10][7]. Future Outlook - The report projects a net profit growth of 2.06% for 2025, with a target price based on a price-to-book (PB) ratio of 1.2X for 2025 [10].