Minsheng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Views - The company actively supports the real economy with a focus on key sectors, leading to stable asset growth and a positive outlook for business structure adjustments, which may enhance capital efficiency and deposit quality [3][4]. - Despite short-term pressure on revenue and profit growth, the company is effectively controlling asset quality, with stable performance indicators [3][4]. - The forecasted EPS for 2024-2026 is 0.72, 0.76, and 0.81 yuan respectively, with a corresponding PB of 0.4 for the closing price on March 28, 2024 [3][4]. Summary by Relevant Sections Financial Performance - In 2023, the company achieved a revenue of 145.7 billion yuan, down 3.9% YoY, and a net profit of 40.8 billion yuan, down 9.0% YoY [2][4]. - The net interest income decreased by 5.4% YoY, primarily due to a narrowing net interest margin, which was 1.74% at the end of 2023, a decrease of 27 basis points from the end of 2022 [2][4]. - Non-interest income saw a slight increase of 29.1% YoY, mainly due to the fair value increase of trading financial assets from a low base [2][4]. Asset Quality and Capital Strength - The company's non-performing loan ratio was 1.25% at the end of 2023, unchanged from the end of 2022, with a provision coverage ratio of 181%, up 5.6 percentage points from the previous quarter [2][4]. - The core Tier 1 capital adequacy ratio improved to 9.18% at the end of 2023, an increase of 46 basis points from the end of 2022, supported by a high proportion of convertible bond conversions and effective wealth management strategy [2][4]. Loan and Deposit Growth - Total assets, loans, and deposits grew by 7.5%, 6.0%, and 4.5% YoY respectively in 2023 [2][4]. - The company focused its lending on key economic sectors, with significant growth in green loans (57%), technology innovation loans (51%), manufacturing loans (25%), and inclusive small and micro loans (24%) [2][4].