ZRCBANK(SZ:002839) HTSC·2025-03-30 06:05Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 4.95 [8]. Core Views - The company is expected to achieve a year-on-year growth in net profit of 5.1%, operating income of 3.8%, and PPOP of 5.5% for 2024, although the net profit is slightly below expectations due to pressure on net interest income [1][2]. - The company is focusing on small and micro-enterprise transformation, which is anticipated to provide a valuation premium [1][5]. Summary by Sections Financial Performance - For 2024, the company forecasts total assets, loans, and deposits to grow by 5.7%, 8.0%, and 6.4% respectively, with a slight decline in growth rates compared to the previous quarter [2]. - The net interest margin for 2024 is projected at 1.62%, showing a slight increase from the previous period [2]. - Non-interest income is expected to increase significantly, with investment income rising by 124.1% year-on-year [3]. Capital and Asset Quality - The capital adequacy ratio and core tier 1 capital ratio are projected to be 13.57% and 11.08% respectively, indicating a solid capital position [3]. - The non-performing loan ratio is expected to remain stable at 0.94%, with a provision coverage ratio of 376% [4]. Valuation and Forecast - The company is projected to have a price-to-book (PB) ratio of 0.63 for 2025, with a target price of RMB 4.95, reflecting a slight increase from previous estimates [5]. - The forecasted net profit for 2025 is RMB 1.94 billion, with a growth rate of 3.48% [29].