SRCB(SH:601825) Huachuang Securities·2025-08-31 07:15Investment Rating - The report maintains a "Recommendation" rating for the company, indicating an expected outperformance of 10%-20% relative to the benchmark index over the next six months [2][25]. Core Views - The company's revenue and performance are stable and improving, with a mid-term dividend payout ratio of 33% [2]. - The company reported a 1H25 operating income of 13.44 billion yuan, a year-on-year decrease of 3.4%, and a net profit attributable to shareholders of 7.013 billion yuan, a year-on-year increase of 0.6% [2]. - The non-performing loan ratio has remained stable at 0.97% for five consecutive quarters, while the provision coverage ratio decreased by 2.7 percentage points to 336.6% [2]. Financial Performance Summary - 1H25 revenue growth returned to positive at 0.76%, with a quarter-on-quarter increase of 8.2 percentage points, driven by a narrowing decline in non-interest income and growth in other non-interest income [9]. - The company effectively controlled costs, with business and management expenses decreasing by 7.5% year-on-year, leading to a cost-to-income ratio decline of 1.2 percentage points to 27.9% [9]. - The company's asset and loan growth rates are stable at around 6%, with retail loans showing a year-on-year increase of 1.8% [9]. - The second quarter annualized net interest margin slightly increased by 1 basis point to 1.36%, with a narrowing decline in asset yield [9]. - The company has a solid asset quality, with a non-performing loan net generation rate decreasing to 0.31%, indicating a low level of risk [9]. Investment Recommendations - The company is expected to maintain stable performance, with a projected revenue growth of -3.1%, 4.9%, and 5.8% for 2025E-2027E, and net profit growth of 1.0%, 1.1%, and 4.0% respectively [9]. - The current stock price corresponds to a 2025E price-to-book (PB) ratio of 0.67X, while the target PB is set at 0.75X, leading to a target price of 9.72 yuan [9].