Orient Securities·2025-08-28 03:36Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's projected net profit growth rates for 2025, 2026, and 2027 are 5.5%, 7.9%, and 8.5% respectively, with a target price of 7.70 CNY per share, corresponding to a price-to-book (PB) ratio of 0.65 for 2025 [2][5] - The company's asset deployment capability has been validated, with a significant increase in loan issuance, achieving 661 billion CNY in new loans in the first half of 2025, which is more than double the total for 2024 [9] - The net interest margin remains resilient at 1.60%, with a notable improvement in funding costs, indicating strong deposit-taking capabilities [9] Financial Performance Summary - The company's revenue for 2023 is projected at 27,956 million CNY, with a slight decline of 3.6% year-on-year, but expected to grow in subsequent years [4] - The net profit attributable to the parent company is forecasted to be 10,902 million CNY in 2023, with a growth of 6.1% year-on-year, and is expected to reach 14,232 million CNY by 2027 [4] - The company’s earnings per share (EPS) is projected to increase from 0.94 CNY in 2023 to 1.23 CNY in 2027 [4] Asset Quality and Risk Management - The non-performing loan (NPL) ratio for corporate loans has improved significantly, while individual loans still face structural pressures, with the NPL ratio for individual loans increasing by 44 basis points since the beginning of the year [9] - The provision coverage ratio stands at 356%, indicating sufficient risk mitigation capacity [9]