Guoxin Securities·2025-09-03 02:16Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's performance is in line with expectations, with a slight increase in net profit despite a decrease in revenue. The net interest margin has declined, but provisions have positively impacted profits [3][4] - The total assets of the company have grown steadily, with a year-on-year increase of 8.28% to 9.86 trillion yuan. Deposits increased by 10.73%, while loans grew by 3.79% [2] - The asset quality has shown slight improvement, with a non-performing loan generation rate decreasing to 1.17% and a non-performing loan ratio remaining stable at 1.16% [3] Summary by Sections Financial Performance - In the first half of 2025, the company achieved operating revenue of 10.576 billion yuan, a year-on-year decrease of 2.99%. Net profit increased by 2.78% year-on-year [1] - The annualized weighted ROE for the first half of 2025 was 10.6%, down 0.5 percentage points year-on-year [1] Asset Quality - The non-performing loan generation rate decreased by 0.09 percentage points to 1.17%, while the non-performing loan ratio remained stable at 1.16% [3] - The coverage ratio for provisions was 207.53%, a decrease of 1.90 percentage points from the end of 2024, but an increase of 0.42 percentage points from the first quarter of 2025 [3] Financial Projections - The company forecasts net profit for 2025-2027 to be 69.5 billion, 72.4 billion, and 75.6 billion yuan, with year-on-year growth rates of 1.3%, 4.2%, and 4.3% respectively [3][4] - The diluted earnings per share are projected to be 1.16, 1.22, and 1.27 yuan for 2025, 2026, and 2027 respectively [3][4] Valuation Metrics - The current price-to-earnings (PE) ratios are projected to be 6.7, 6.4, and 6.1 for 2025, 2026, and 2027 respectively, while the price-to-book (PB) ratios are 0.59, 0.55, and 0.52 [3][4]