Donghai Securities·2025-09-30 09:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The report highlights that the decline in net interest margin has narrowed, and asset quality remains stable [1] - The company achieved operating income of 427.09 billion yuan (+1.57% YoY) and net profit attributable to ordinary shareholders of 168.10 billion yuan (-1.39% YoY) in the first half of 2025 [5] - The non-performing loan (NPL) ratio is stable at 1.33%, with a provision coverage ratio of 217.71% [5][6] - The report anticipates that the pressure on net interest margin will ease, and commission income is expected to recover further [8] Summary by Sections Financial Performance - In H1 2025, total assets reached 52.32 trillion yuan (+11.04% YoY), with total loans of 30.19 trillion yuan (+8.44% YoY) [5] - The second quarter's net interest margin was 1.27%, reflecting a decrease of 6 basis points QoQ and 11 basis points YoY [5] - The company’s operating income and net profit forecasts for 2025-2027 are 829.2 billion yuan, 834.4 billion yuan, and 887.3 billion yuan respectively, with net profit forecasts of 369.5 billion yuan, 375.8 billion yuan, and 383.5 billion yuan [7][8] Asset Quality - The NPL ratio remains stable at 1.33%, with a slight increase in overdue rates observed [5][6] - The report indicates that individual loan quality is manageable, supported by a solid customer base and prudent risk management [6] Business Outlook - The report suggests that the company will maintain a strong position in the industry, with expectations for stable growth in commission income due to improved market activity [8] - The company is expected to benefit from government support and a solid customer base, which will help it navigate the challenging operating environment [8]