Changjiang Securities·2025-09-05 10:13Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Views - The company reported a revenue growth of +0.8% in the first half of the year, with a net profit growth of +1.6%, ranking among the top two state-owned banks in terms of net profit growth [2][6]. - The non-performing loan (NPL) ratio at the end of the first half was 1.28%, a decrease of 2 basis points from the previous quarter and 3 basis points from the beginning of the year, indicating a significant improvement in asset quality compared to peers [2][6]. - The provision coverage ratio increased by 9 percentage points to 210%, reaching a ten-year high, which supports the stability of net interest margin and profitability [2][6]. Summary by Sections Financial Performance - Revenue growth for the first half was +0.8%, with Q1 showing a decline of -1.0% and Q2 recovering to +2.6%. Net profit growth was +1.6%, with Q1 at +1.5% [2][6]. - The net interest margin decreased by 2 basis points to 1.21% in the first half, with a total decline of 6 basis points expected for the year, the smallest drop among state-owned banks [2][6]. Asset Quality - The NPL ratio at the end of the first half was 1.28%, down 2 basis points from the previous quarter and 3 basis points from the start of the year, showing the most significant decline among state-owned banks [2][6]. - The NPL net generation rate was 0.49%, down 4 basis points from the previous year, indicating a positive trend in asset quality [2][6]. Investment Valuation - The current valuation for the company's A-shares and H-shares is approximately 0.56x and 0.47x price-to-book (PB) ratio, respectively, indicating that the stock is significantly undervalued [2][6]. - The company ranks among the top five banks in terms of A-share index weight, with a low institutional allocation ratio, supporting the recommendation to maintain a "Buy" rating [2][6].