CZBANK(SH:601916) Ping An Securities·2025-03-31 09:45Investment Rating - The investment rating for the company is "Recommended" [1][4][7] Core Views - The company's non-interest income has shown resilience, contributing to revenue recovery, while asset quality is improving [7][8] - The bank's total assets reached 3.33 trillion yuan, with a year-on-year growth of 5.78%, and loans increased by 8.21% [4][8] - The bank's net profit for 2024 was 15.2 billion yuan, reflecting a slight year-on-year increase of 0.92% [4][7] Financial Performance Summary - In 2024, the company achieved operating income of 67.7 billion yuan, a year-on-year increase of 6.19% [4][6] - The annualized weighted average ROE was 8.49%, down by 0.93 percentage points year-on-year [4][7] - The bank's net interest margin at the end of 2024 was 1.71%, with a loan yield of 4.45% [7][11] Asset Quality Summary - The non-performing loan (NPL) ratio improved to 1.38% at the end of 2024, down 5 basis points from the previous quarter [8][10] - The provision coverage ratio remained stable at 179%, indicating a solid risk mitigation capacity [8][10] - The bank's credit impairment losses decreased by 5.6% year-on-year, reflecting improved asset quality management [9][10] Future Outlook - The bank's strategic focus on deepening its operations in Zhejiang province is expected to support stable growth in corporate and retail banking [7][8] - The forecast for earnings per share (EPS) for 2025-2027 is adjusted to 0.57, 0.61, and 0.66 yuan, respectively, with corresponding profit growth rates of 3.7%, 5.9%, and 8.4% [7][10] - The bank's price-to-book (P/B) ratios for 2025-2027 are projected to be 0.45x, 0.42x, and 0.40x, respectively, indicating a favorable valuation relative to its improving asset quality [7][10]