EBSCN·2025-08-31 03:40Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has shown an improvement in revenue growth and capital strength, with a reported operating income of 329 billion and a year-on-year growth of 3.8% for the first half of 2025 [2][3] - The net profit attributable to the parent company is 117.6 billion, reflecting a slight decline of 0.9% year-on-year, but the decline has narrowed compared to the first quarter [3] - The weighted average return on equity (ROE) stands at 9.11%, down by 0.47 percentage points year-on-year [2] Summary by Sections Revenue and Profitability - The company's revenue and pre-provision operating profit (PPOP) growth rates for the first half of the year are 3.8% and 0.4%, respectively, showing an improvement from the first quarter [3] - Non-interest income has significantly increased by 26.4%, contributing to 34.7% of total revenue, which is a 6.2 percentage point increase from the previous year [3][7] Asset and Loan Growth - As of the end of the second quarter, the company's interest-earning assets and loans have grown by 8.7% and 9.1% year-on-year, respectively, with a notable increase in loan issuance in key sectors [3][4] - The company has focused on lending to strategic emerging industries, private enterprises, and green loans, with significant growth rates in these areas [4] Liability and Deposit Growth - The growth rate of interest-bearing liabilities has improved, with retail and corporate deposits increasing by 8.4% and 8.2% year-on-year, respectively [5] - The proportion of deposits to interest-bearing liabilities is 78.6%, slightly down from the previous quarter [5] Interest Margin and Non-Interest Income - The net interest margin is reported at 1.26%, a decrease of 3 basis points from the first quarter, but the company expects resilience in the margin due to effective cost control [6] - Non-interest income has shown robust growth, with significant contributions from fees, commissions, and other non-interest revenues [7] Asset Quality and Capital Adequacy - The non-performing loan (NPL) ratio has decreased to 1.24%, indicating improved asset quality [8] - The company has successfully completed a capital increase of 165 billion, enhancing its capital adequacy ratios significantly [8] Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025-2027 is set at 0.76, 0.79, and 0.81 yuan, respectively, with the current stock price corresponding to a price-to-book (PB) ratio of 0.68, 0.63, and 0.59 [9][10]