GUOTAI HAITONG SECURITIES·2025-12-10 09:05Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 8.58 CNY from the current price of 7.45 CNY [2][6]. Core Insights - The company's revenue and net profit growth rates have been improving quarter by quarter, indicating effective control over interest margins and stable asset quality [2][12]. - The report highlights a focus on high-quality development, prioritizing stable interest margins over mere scale expansion, with core indicators showing continuous improvement after a three-year effort to enhance asset quality [12]. Financial Summary - Revenue for 2023 is projected at 257,595 million CNY, with a slight increase of 0.3% year-on-year. The net profit attributable to shareholders is expected to be 92,728 million CNY, reflecting a 0.7% increase [4]. - For 2025, revenue is estimated to reach 263,638 million CNY, with a growth rate of 1.5%, while net profit is projected at 95,696 million CNY, marking a 2.3% increase [4][13]. - The net interest margin is expected to decrease by 8 basis points to 1.20% year-on-year, with pressures on further declines anticipated but limited downward space [12][13]. Asset Quality - As of Q3 2025, the non-performing loan (NPL) ratio is reported at 1.26%, down 2 basis points from Q2, indicating an improvement in asset quality [12]. - The report notes that the corporate NPL ratio has improved to 1.24%, while the retail NPL ratio has slightly increased to 1.42%, suggesting ongoing challenges in consumer repayment capabilities [12].