Tianfeng Securities·2025-05-04 14:51Investment Rating - The investment rating for Minsheng Bank is "Buy" with a 6-month outlook maintained [6]. Core Insights - Minsheng Bank reported a significant revenue improvement with Q1 2025 revenue reaching 36.8 billion yuan, a year-over-year increase of 7.41% [1][2]. - The bank's net profit attributable to shareholders was 12.7 billion yuan, reflecting a year-over-year decrease of 5.13% [1][2]. - The non-performing loan ratio stood at 1.46%, with a provision coverage ratio of 144.27% [1][3]. Financial Performance - Revenue Breakdown: In Q1 2025, net interest income was 24.9 billion yuan (YoY +2.49%), accounting for 67.6% of total revenue, while non-interest income was 11.9 billion yuan, up 19.34% YoY [2]. - Profitability Metrics: The bank's pre-provision profit and net profit showed a year-over-year increase of 9.98% and a decrease of 5.13%, respectively, primarily due to increased provisioning efforts, which rose by 42.68% YoY [2][3]. - Interest Margin: The net interest margin recorded at 1.41%, with a quarter-over-quarter improvement of 2 basis points [2]. Asset and Liability Management - Total interest-earning assets reached 7.42 trillion yuan, a 0.9% increase YoY, with loan growth being a key driver [3]. - On the liability side, interest-bearing liabilities totaled 6.97 trillion yuan, reflecting a 3.2% YoY growth [3]. - The bank's deposit base grew by 2.4% YoY, while bond issuance surged by 35% [3]. Capital Adequacy - The core Tier 1 capital adequacy ratio was reported at 9.34%, a slight decrease of 2 basis points, attributed to increased loan disbursements [3]. Earnings Forecast and Valuation - The forecast for net profit growth from 2025 to 2027 is projected at 1.14%, 2.35%, and 2.72%, respectively [4]. - The book value per share (BPS) is expected to be 12.96, 13.42, and 13.91 yuan for the years 2025, 2026, and 2027 [4].