Guoxin Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy" [5][26]. Core Views - The company's revenue for 2023 was CNY 843.1 billion, a year-on-year decrease of 3.7%, while the net profit attributable to shareholders was CNY 364 billion, reflecting a growth of 0.8% year-on-year [5]. - Total assets increased by 12.8% year-on-year to CNY 44.7 trillion, with deposits and loans growing by 12.2% and 12.4% respectively [5]. - The net interest margin decreased to 1.61%, down 31 basis points year-on-year, primarily due to a narrowing interest spread between deposits and loans [5]. - Asset quality remained stable, with a non-performing loan ratio of 1.36%, down 2 basis points from the beginning of the year, and a provision coverage ratio of 214% [5]. Financial Forecasts and Valuation - The forecasted net profit for 2024-2025 is CNY 366.5 billion and CNY 375.5 billion respectively, with a projected diluted EPS of CNY 0.99 and CNY 1.01 [5][19]. - The current price-to-earnings (PE) ratio is projected at 5.4 for 2024, 5.3 for 2025, and 5.1 for 2026, while the price-to-book (PB) ratio is 0.52, 0.49, and 0.46 for the same years [5][19].