Bank of RuiFeng(SH:601528)2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for Ruifeng Bank, indicating a positive outlook for the stock based on its performance and growth potential [15]. Core Insights - Ruifeng Bank is expected to achieve steady growth in return on equity (ROE) driven by efficient leverage and participation in subscription investments. Short-term subsidy income is anticipated to support revenue growth in 2024, outperforming peers [15]. - The bank's net profit for 2024-2026 is projected to grow by 12%, 14.1%, and 15.0% respectively, with adjustments made to previous profit growth forecasts due to cautious considerations regarding credit costs [15]. - The current stock price corresponds to a price-to-book (PB) ratio of 0.54 for 2024, reinforcing the "Buy" rating [15]. Financial Performance Summary - The total operating income for Ruifeng Bank in 2023 was RMB 3,804 million, reflecting a year-on-year growth of 7.9%. The net profit attributable to shareholders was RMB 1,727 million, with a growth rate of 13.0% [35]. - The bank's net interest income decreased by 4.2% year-on-year, while non-interest income saw a significant increase of 122.8% [23]. - The bank's total assets reached RMB 196,888 million, marking a year-on-year increase of 23.3% [23]. Key Financial Ratios - The return on equity (ROE) for 2023 was 11.0%, with projections of 11.1% for 2024 [35]. - The net interest margin (NIM) has been under pressure, with a reported decrease to 1.67% in the fourth quarter of 2023 [23]. - The cost-to-income ratio for the bank was reported at 34.70% for 2023, indicating a slight increase from the previous year [23].