BANK OF QINGDAO(002948)2025-03-27 06:10Investment Rating - The report assigns a "Buy-A/Buy-H" rating for Qingdao Bank, with a current price of 4.25 CNY and a reasonable value of 5.16 CNY, and for H shares, a current price of 3.26 HKD and a reasonable value of 3.96 HKD [2]. Core Views - The report highlights strong performance with revenue, PPOP, and net profit attributable to shareholders growing by 8.2%, 7.1%, and 20.2% year-on-year, respectively, with net interest margin decline narrowing [5][6]. - Key drivers of performance include steady growth in loan and deposit volumes, a marginal reduction in net interest margin, significant growth in non-interest income, and stable asset quality [5][6]. Summary by Sections Financial Performance - For 2024, revenue, PPOP, and net profit attributable to shareholders increased by 8.2%, 7.1%, and 20.2% year-on-year, with growth rates showing slight variations compared to previous quarters [5][8]. - Loan growth was 13.5% year-on-year, with deposits increasing by 11.9%, indicating robust support for the real economy [5][8]. - The net interest margin for 2024 was reported at 1.73%, with a slight recovery expected in Q4 [5][8]. Asset Quality - The non-performing loan (NPL) ratio stood at 1.14%, showing improvement from the previous quarter, primarily due to better asset quality in corporate loans [5][8]. - The provision coverage ratio increased to 241.32%, indicating a stable asset quality overall [5][8]. Non-Interest Income - Other non-interest income grew by 35% year-on-year, with investment income contributing significantly to net profit [5][8]. - The report notes a decline in net fee income by 4.9%, impacted by reduced fees in the insurance sector and lower credit card transaction volumes [5][8]. Profitability Forecast - The forecast for net profit growth is 11.53% and 12.07% for 2025 and 2026, respectively, with EPS projected at 0.78 CNY and 0.88 CNY [5][8]. - The current stock price corresponds to a PE ratio of 5.47X for 2025 and 4.85X for 2026, with a PB ratio of 0.60X and 0.54X for the same years [5][8].