NJBK(SH:601009) HTSC·2025-08-29 04:48Investment Rating - The investment rating for the company is maintained as "Buy" [1] Core Views - The report highlights strong credit growth, with significant increases in interest income and stable asset quality. The company is positioned as a quality investment with dividend growth potential [6][10] - The company has shown steady performance with a U-shaped recovery curve, supported by convertible bond conversions that further bolster business expansion [6] Financial Performance Summary - For the first half of 2025, the company's net profit attributable to shareholders increased by 8.8% year-on-year, while revenue grew by 8.6% [6] - The annualized ROA and ROE for the first half of 2025 were 0.93% and 15.32%, respectively, reflecting slight declines compared to the previous year [6] - The company’s total assets, loans, and deposits grew by 16.9%, 15.0%, and 16.2% respectively, with strong loan growth continuing into the second quarter [7] Revenue and Profitability Forecast - Projected operating revenue for 2024 is RMB 50,273 million, with a growth rate of 11.32%. The net profit attributable to shareholders is expected to reach RMB 20,177 million, reflecting a growth of 9.05% [5][10] - The net interest margin for the first half of 2025 was 1.86%, with net interest income increasing by 22.1% year-on-year [8] - The company’s EPS for 2025 is projected at RMB 1.88, with a PE ratio of 6.01 times [10] Asset Quality and Capital Adequacy - The non-performing loan (NPL) ratio at the end of the first half of 2025 was 0.84%, with a provision coverage ratio of 312% [9] - The core Tier 1 capital adequacy ratio improved to 9.47%, indicating a solid capital position [9] Valuation Metrics - The target price for the company is set at RMB 14.79, corresponding to a PB ratio of 0.76 times [2][10] - The report suggests a target PB of 1.0 times for 2025, reflecting the company's strategic clarity and stable operations [10]