2023年年报点评：小微贷款高增长，分红比例上调

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a 7.9% year-on-year increase in operating income and a 13.0% increase in net profit attributable to shareholders for 2023. The non-performing loan ratio decreased to 0.97%, while the provision coverage ratio increased to 304.12%. The dividend per share rose to 0.18 yuan, with a payout ratio of 20.5%. The company is characterized by a strong focus on small and micro enterprises, leading market mechanisms, and is considered a typical high-quality growth bank in Zhejiang. The strategy of investing in high-quality small banks in Zhejiang is an effective path to sustainably elevate ROE. For 2024, operating income and net profit are expected to grow by 6.4% and 10.6% respectively, with a projected PB valuation of 0.54X based on the closing price on March 27. As a high-growth bank with prominent market-oriented genes, there is considerable room for valuation uplift, making it a key recommendation [6][25][51]. Summary by Sections Financial Performance - The total loan amount increased by 10.2% compared to the beginning of the year, with a net addition of 10.5 billion yuan. The growth structure of loans focused on small and micro enterprises, with corporate loans increasing by 29.1% and personal loans decreasing by 2.4%. The deposit amount grew by 16.6% compared to the beginning of the year [6][51]. Investment Strategy - Investment income increased by 10.8%, with the acquisition of Yongkang Rural Commercial Bank contributing 0.54 billion yuan. The company continued to increase its stake in Yongkang Rural Commercial Bank and acquired a 5.0% stake in Cangnan Rural Commercial Bank, accelerating its investment strategy. This approach is expected to provide ongoing support for the company's operating income and ROE [7][25]. Asset Quality - The non-performing loan ratio decreased to 0.97%, and the provision coverage ratio increased to 304.12%. The overdue loan ratio rose to 1.84%, indicating potential fluctuations in asset quality under economic pressure. The net generation rate of non-performing loans decreased to 0.48% [47][51].