Guotai Junan Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to 7.20 CNY from the previous 7.00 CNY [5][3]. Core Views - The company's revenue and net profit both achieved slight positive growth in 2023, with asset quality remaining stable and showing solid improvement [3]. - The forecast for net profit growth for 2024-2026 has been adjusted to 0.7%, 3.2%, and 4.9%, respectively, with corresponding EPS of 1.16 CNY, 1.20 CNY, and 1.26 CNY per share [3][4]. - The net interest margin is expected to remain under pressure due to potential loan repricing and a trend towards term deposits, which has not significantly improved [3]. Financial Summary - In 2023, the company's operating income was 257,595 million CNY, a slight increase from 256,796 million CNY in 2022, while net profit attributable to shareholders was 92,728 million CNY, up from 92,102 million CNY [4]. - The net interest margin for Q4 2023 decreased by 5 basis points to 1.22%, with an annual decline of 20 basis points [3]. - Total loans and deposits grew by 9.1% and 7.6%, respectively, compared to the beginning of the year [3]. Asset Quality - As of Q4 2023, the asset quality showed slight fluctuations compared to Q3 2023, primarily due to new regulations on financial asset risk classification and pressures in the retail loan sector, but still improved compared to the beginning of the year [3]. - The non-performing loan ratio for corporate real estate loans was reported at 4.99%, with provisions significantly higher than for other loans, indicating manageable risk [3].