渝农商行（601077）：利润稳健增长

Investment Rating - The investment rating for the company is "Buy" and is maintained [5] Core Views - The company has shown steady profit growth with a year-on-year increase in revenue and net profit of 0.5% and 4.6% respectively for the first half of 2025, although the growth rates have slightly decreased compared to the first quarter [2][5] - The net interest margin remains resilient, with a slight decrease to 1.60% in the first half of 2025, indicating improved profitability despite challenges in non-interest income [2][3] - The non-interest income has faced significant pressure, declining by 16.6% year-on-year, primarily due to a substantial drop in card-related income [2] Summary by Sections Financial Performance - For the first half of 2025, the company reported a revenue of 28,741 million and a net profit attributable to the parent company of 12,114 million, with respective year-on-year growth rates of 0.5% and 4.6% [6] - The non-performing loan ratio remained stable at 1.17% as of the end of Q2 2025, while the provision coverage ratio decreased by 8 percentage points to 356% [4][6] Profitability and Margins - The average net interest margin for the first half of 2025 was 1.60%, slightly down from the previous quarter, with the asset yield decreasing to 3.05% [3] - The cost of liabilities improved, with a decrease in the cost of time deposits contributing to a better margin [3] Asset Quality - The non-performing loan ratio for retail operating loans increased to 2.46% by the end of the first half of 2025, indicating a need for close monitoring of this segment [4] - The company’s TTM non-performing loan generation rate was 0.86%, showing a slight increase in pressure [4] Earnings Forecast and Valuation - The company is expected to achieve a net profit growth of 5.2%, 5.5%, and 6.3% for the years 2025 to 2027, with a target price of 7.81 CNY per share, reflecting a potential upside of 21% [5]