Bank of RuiFeng(SH:601528) Shenwan Hongyuan Securities·2025-08-27 09:29Investment Rating - The report maintains a "Buy" rating for Ruifeng Bank [1]. Core Views - Ruifeng Bank's performance in the first half of 2025 aligns with expectations, with revenue of 2.26 billion yuan, a year-on-year increase of 3.9%, and a net profit attributable to shareholders of 890 million yuan, up 5.6% year-on-year [4][6]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.98% and a provision coverage ratio increasing by 14 percentage points to 340% [4][9]. - The bank's strategy of focusing on "One Base and Four Arrows" is showing positive results, with significant contributions from regions like Yiwu and Yuecheng [6][9]. Financial Data and Profit Forecast - Total revenue is projected to grow from 3.80 billion yuan in 2023 to 4.51 billion yuan in 2025, with a compound annual growth rate (CAGR) of 2.78% [5]. - Net profit is expected to increase from 1.73 billion yuan in 2023 to 2.02 billion yuan in 2025, reflecting a year-on-year growth rate of 5.28% [5]. - The bank's return on equity (ROE) is forecasted to decline slightly from 10.95% in 2024 to 10.23% in 2025 [5]. Performance Analysis - The net interest income for the first half of 2025 grew by 3.4%, contributing significantly to revenue growth [6][9]. - Non-interest income growth slowed to 5% in the first half of 2025, down from 11% in the first quarter [6]. - The bank's loan growth remains stable, with a year-on-year increase of 10% in the second quarter of 2025, while deposits saw a slight decline due to adjustments in high-interest products [6][10]. Asset Quality and Risk Management - The NPL ratio remained stable at 0.98%, with proactive measures taken to increase provisions, enhancing the bank's risk buffer [9][11]. - The bank's strategy to optimize loan structures by reducing bill financing is evident, with a significant reduction in bill financing by 3.6 billion yuan in the first half of 2025 [10][11]. Market Position and Valuation - The current price-to-book (PB) ratio is 0.55, indicating potential undervaluation relative to the bank's growth prospects [9]. - The report suggests that Ruifeng Bank is well-positioned to outperform the industry, supported by its strategic initiatives and stable financial performance [9].