Bank of RuiFeng(SH:601528) HTSC·2025-03-30 04:05Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 6.60 [8][11]. Core Insights - The company is expected to achieve a 2024 net profit and operating income growth of 11.3% and 15.3% year-on-year, respectively, with a strategic transformation proving effective and significant business expansion potential [1][5]. - The company has accelerated credit expansion, with total assets, loans, and deposits growing by 12.0%, 15.5%, and 12.8% year-on-year by the end of 2024 [2]. - Non-interest income has shown strong growth, increasing by 75.9% year-on-year, contributing to 30.6% of total revenue [3]. - The company has improved its retail non-performing loan (NPL) ratio, which decreased to 1.76% by the end of 2024 [4]. Summary by Sections Financial Performance - The company's 2024 operating income is projected at RMB 4,385 million, with a year-on-year growth of 15.29% [7]. - The net profit for 2024 is expected to reach RMB 1,922 million, reflecting an 11.27% increase year-on-year [7]. - The non-performing loan ratio is stable at 0.97%, with a provision coverage ratio of 321% [4][7]. Asset Quality - The company has maintained a non-performing loan ratio of 0.97% and a provision coverage ratio of 321% as of the end of 2024, indicating strong asset quality management [4][7]. - The attention rate has decreased to 1.45%, suggesting an improvement in forward-looking risk [4]. Capital Adequacy - By the end of 2024, the capital adequacy ratio and core tier 1 capital ratio are reported at 14.87% and 13.67%, respectively, showing a slight increase from the previous quarter [3][7]. Valuation Metrics - The target price for 2025 is set at a price-to-book (PB) ratio of 0.65, with a projected book value per share (BVPS) of RMB 10.15 [5][7]. - The company is expected to maintain a dividend yield of approximately 3.72% in 2025 [7].