PSBC(SH:601658) Orient Securities·2025-03-28 05:18Investment Rating - The report maintains a "Buy" rating for Postal Savings Bank with a target price of 7.18 CNY per share, reflecting a 20% valuation premium over the estimated price-to-book (PB) ratio for 2025 [3][7]. Core Insights - The report highlights that the reduction in agency fees has contributed to cost savings, leading to a favorable growth in corporate deposits and loans. The bank's revenue, pre-provision operating profit (PPOP), and net profit attributable to the parent company showed year-on-year growth rates of 1.8%, 4.5%, and 0.2% respectively by the end of 2024 [11]. - The bank's total assets and loan growth rates have slightly slowed, but the structure of retail and corporate loans has become more balanced. The net interest margin for the year was reported at 1.87%, with a deceleration in the rate of decline compared to previous quarters [11]. - Asset quality remains stable, although the retail segment has faced some pressure due to industry factors. The non-performing loan (NPL) ratio stood at 0.90% at the end of 2024, with a slight increase from the previous quarter [11]. Financial Performance Summary - The bank's operating income for 2023 was 342.51 billion CNY, with a projected increase to 348.78 billion CNY in 2024, reflecting a year-on-year growth of 1.8% [5]. - The net profit attributable to the parent company is expected to grow from 86.27 billion CNY in 2023 to 86.48 billion CNY in 2024, indicating a modest growth of 0.2% [5]. - The earnings per share (EPS) is projected to increase from 0.80 CNY in 2023 to 0.81 CNY in 2024, while the book value per share (BVPS) is expected to rise from 7.92 CNY to 8.37 CNY over the same period [5][11].