Guoxin Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Accumulate" [3][4] Core Views - The company's overall performance remains stable, with a decline in net profit primarily due to increased asset impairment losses. The forecast for net profit for 2024-2025 has been adjusted downwards to 38.6 billion and 38.7 billion respectively, reflecting the impact of recent LPR adjustments and increased provisioning [1][5] - The company's total assets reached 6.77 trillion yuan at the end of 2023, a year-on-year increase of 7.5%, with loan growth of 6.0% and deposit growth of 4.5% [1][4] - The net interest margin has decreased to 1.74%, down 17 basis points year-on-year, influenced by declining loan rates [1][6] Summary by Relevant Sections Financial Performance - In 2023, the company achieved operating income of 145.7 billion yuan, a decrease of 3.9% year-on-year, and a net profit of 40.8 billion yuan, down 9.0% year-on-year [1][4] - The average ROE for 2023 was 8.4%, a decline of 1.9 percentage points from the previous year [1][4] Asset Quality - The non-performing loan ratio remained stable at 1.25% at the end of 2023, with a provision coverage ratio of 181%, down 7 percentage points from the previous year [1][6] - The company reported an increase in asset impairment losses by 2.9% year-on-year, which significantly impacted net profit growth [1][5] Profit Forecasts - The adjusted profit forecasts for 2024-2025 are 38.6 billion and 38.7 billion yuan respectively, with a projected net profit growth rate of -5.4% and 0.2% [5][7] - The diluted EPS is expected to be 0.57 yuan for both 2024 and 2025, with a slight increase to 0.60 yuan in 2026 [4][7] Valuation Metrics - The current PE ratio is projected at 5.5 for 2024 and 5.5 for 2025, with a PB ratio of 0.39 for 2024 and 0.37 for 2025 [4][7]