NJBK(SH:601009) ZHESHANG SECURITIES·2025-08-29 00:35Investment Rating - The investment rating for Nanjing Bank is "Buy" (maintained) [9] Core Views - Nanjing Bank's performance has shown a U-shaped improvement, with revenue and net profit increasing by 8.6% and 8.8% year-on-year respectively in the first half of 2025, indicating a positive trend [2][3] - Shareholders have shown confidence in the bank's future by increasing their holdings, with a total of nearly 6 billion yuan in active purchases [6] Summary by Sections Performance Overview - In H1 2025, Nanjing Bank's revenue and net profit increased by 8.6% and 8.8% year-on-year, with quarter-on-quarter growth of 2.1 percentage points and 1.8 percentage points respectively [2] - The bank's non-performing loan (NPL) ratio rose slightly by 1 basis point to 0.84% by the end of Q2 2025, while the provision coverage ratio decreased by 12 percentage points to 312% [2][5] Revenue and Profit Growth - The bank's revenue and net profit growth rates improved quarter-on-quarter, driven by a 27% year-on-year increase in interest-earning assets in Q2 2025, which was 7 percentage points higher than Q1 [3] - The increase in impairment losses contributed positively, with a 12% year-on-year rise in asset impairment losses in H1 2025, although the growth rate slowed by 2 percentage points compared to Q1 [3] Interest Margin and Asset Quality - The interest margin decreased by 10 basis points to 1.31% in Q2 2025, primarily due to a larger decline in asset yield compared to the cost of liabilities [4] - The bank's NPL generation rate continued to improve, with a true NPL generation rate of 1.30% in H1 2025, down 12 basis points from Q1 [5] Shareholder Confidence - Shareholders holding more than 1% of Nanjing Bank's shares have actively increased their holdings, reflecting confidence in the bank's future development and value recognition [6] Earnings Forecast and Valuation - Nanjing Bank's net profit is expected to grow by 8.94%, 6.97%, and 6.33% year-on-year from 2025 to 2027, with corresponding book values per share of 15.07, 16.35, and 17.71 yuan [7] - The target price is set at 15.70 yuan per share, corresponding to a price-to-book (PB) ratio of 1.04 for 2025, indicating a potential upside of 39% from the current price [7]