INDUSTRIAL SECURITIES·2024-03-28 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [1][5] Core Views - The company has shown steady growth in performance, with 2023 revenue and net profit increasing by 0.3% and 0.7% year-on-year, respectively [3][4] - Total assets increased by 8.2% year-on-year, with loans growing by 8.9%, driven primarily by corporate loans [4][5] - The net interest margin decreased by 2 basis points to 1.28%, with a year-on-year decline of 20 basis points [4][5] - Asset quality remains stable, although the non-performing loan ratio in the real estate sector has risen significantly [4][5] Summary by Sections Performance Overview - In 2023, the company achieved operating income of 257.6 billion and a net profit attributable to shareholders of 92.7 billion, reflecting a year-on-year growth of 0.3% and 0.7%, respectively [3][4] - The net interest income decreased by 3.4% year-on-year, while other non-interest income increased by 20% [4][6] Loan and Asset Growth - Total assets grew by 8.2% year-on-year, with loans increasing by 8.9% [4][5] - Corporate loans contributed approximately 71% of the incremental growth, with significant increases in manufacturing, green credit, and strategic emerging industries [4][5] Interest Margin and Cost - The net interest margin for 2023 was 1.28%, with a decrease in loan yield by 26 basis points year-on-year [4][5] - The cost-to-income ratio was 30.0%, reflecting a slight increase of 0.4 percentage points year-on-year [4][6] Asset Quality - The non-performing loan ratio was stable at 1.33%, with a slight increase in the real estate sector's non-performing loans [4][5] - The provision coverage ratio decreased to 195%, although it remains higher than the previous year [4][5] Capital Adequacy - As of the end of 2023, the core Tier 1, Tier 1, and total capital adequacy ratios were 10.23%, 12.22%, and 15.27%, respectively, all meeting regulatory requirements [5][6] Earnings Forecast - The company is expected to have an EPS of 1.25 yuan in 2024 and 1.27 yuan in 2025, with a projected PB of 0.49 times by the end of 2024 [5][6]