BOC HONG KONG(02388) 华泰证券·2025-03-27 06:19Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 37.06 [8][10] Core Insights - The company's net profit for 2024 is expected to grow by 16.8% year-on-year, with operating income and PPOP increasing by 8.8% and 10.0% respectively, driven by better-than-expected credit cost management [1][5] - The dividend per share is set at HKD 1.99, corresponding to an annualized dividend yield of 6.66%, with a payout ratio of 55% for 2024 [1][5] - The company is focusing on optimizing its cost of liabilities and enhancing its non-interest income, which is projected to improve in the coming years [2][3] Summary by Sections Financial Performance - Total assets, loans, and deposits as of the end of 2024 are expected to grow by 8.4%, -1.5%, and 8.5% year-on-year respectively [2] - The net interest income for 2024 is projected to increase by 2.5% year-on-year, with a net interest margin improvement of 3 basis points to 1.64% [2] Non-Interest Income - The growth rate of non-interest income improved to 7.9% year-on-year, with significant increases in various service commissions, although loan commission income declined due to weak credit demand [3] Asset Quality and Cost Control - The non-performing loan ratio is stable at 1.05%, with a provision coverage ratio of 85% [4] - The cost-to-income ratio is expected to improve to 24.6%, reflecting effective cost management [4] Valuation and Forecast - The projected book value per share (BVPS) for 2025 is HKD 33.69, with a target price set at a price-to-book (PB) ratio of 1.10 times [5][27] - The forecasted earnings per share (EPS) for 2025 is HKD 3.63, with a price-to-earnings (PE) ratio of 8.21 times [27][28]