Changjiang Securities·2025-05-19 01:51Investment Rating - The investment rating for the industry is "Positive" and is maintained [11]. Core Viewpoints - The report indicates that since 2024, driven by dividend logic and insurance capital accumulation, the company has undergone a clear valuation repair, with A-shares and H-shares reaching PB valuations of 1.02x and 1.03x respectively for 2025, while the dividend yield has dropped to 4.3% [2][6]. - The company is the largest weight in bank stocks, with a weight of 2.56% in the CSI 300 and 1.89% in the CSI 800, indicating a significant under-allocation in active fund configurations [2][6]. - The report emphasizes the company's long-term advantages in fundamentals among large banks, being the only asset that combines high index weight, endogenous growth dividend attributes, and cyclical elasticity, suggesting further elevation of the valuation center in the current market [2][6]. Summary by Sections Valuation and Market Position - The company is expected to see a new round of valuation center elevation, supported by its long-term superior ROE levels and sustainable high dividends without relying on external financing [6]. - The report notes that the dividend yield is expected to move towards below 3.5% in the medium term [6]. Financial Performance - The report highlights that deposit costs are accelerating downward, and wealth management income growth has turned positive, no longer dragging down revenue [7]. - The net interest margin is leading among large banks, with a significant decrease in deposit costs by 25 basis points compared to the entire year of 2024 [8]. Wealth Management and Income Growth - After three years of decline, wealth management income has seen a turning point, with a 10.5% positive growth in the first quarter of this year, driven by high growth in fund agency, trust agency, and financial product sales [9]. - The report indicates that the capital market's recovery has led to an increase in the sales proportion of equity and mixed products [9]. Asset Quality - The report states that the new generation of non-performing loans has decreased, with the new generation rate dropping to 1.00%, the lowest level since 2022, reflecting a clearing of real estate risks [10]. - The credit card overdue rate has shown improvement, decreasing by 17 basis points to 3.70% after five consecutive quarters of increase [10].