BANK OF QINGDAO(SZ:002948) CMS·2025-03-27 02:32Investment Rating - The report maintains a strong recommendation for Qingdao Bank with a target price of 4.25 CNY per share [5]. Core Views - The company has shown significant growth in profitability, with a 20.16% year-on-year increase in net profit for 2024, driven by scale expansion and a reduction in impairment provisions [1][3]. - The asset quality of Qingdao Bank is improving, with a non-performing loan (NPL) ratio of 1.14% at the end of 2024, down 3 basis points from the previous quarter [2][3]. - The bank's dividend per share remains at 0.16 CNY, but the cash dividend payout ratio has decreased from 28.1% in 2023 to 23.2% in 2024 due to improved profitability [3]. Summary by Sections Performance - In 2024, Qingdao Bank's total revenue, pre-provision operating profit (PPOP), and net profit attributable to shareholders grew by 8.22%, 7.10%, and 20.16% respectively compared to the previous year [1][12]. - The bank's quarterly performance in Q4 2024 showed a revenue growth of 8.5% and a net profit growth of 44.5% year-on-year, indicating a strong recovery [2][14]. Non-Interest Income - Non-interest income saw a significant increase, with a year-on-year growth of 47.67% in Q1 2024, contributing positively to overall profitability [13][30]. Asset Quality - The NPL ratio improved to 1.14% by the end of 2024, with a coverage ratio of 241.32%, indicating strong asset quality management [2][12]. - The bank's overdue loan ratio decreased to 1.42%, reflecting effective risk management practices [2][12]. Capital and Shareholder Information - The bank's total assets reached 689.96 billion CNY by the end of 2024, with total loans at 340.69 billion CNY and total deposits at 443.43 billion CNY [12][13]. - The return on equity (ROE) for 2024 was reported at 11.51%, showing a stable performance in capital efficiency [28].