INDUSTRIAL SECURITIES·2024-03-31 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [1][6]. Core Views - The company's asset quality remains stable, with a continuous decline in non-performing loan generation rate for three consecutive years. As of the end of 2023, the loan non-performing rate decreased by 20 basis points to 1.48%, achieving a dual decline in non-performing amount/rate for five consecutive quarters. The non-performing loan generation rate is 1.58%, down 43 basis points year-on-year [5][6]. - The dividend payout ratio remains relatively stable, with a per-share dividend of 0.216 yuan in 2023, compared to 0.214 yuan in 2022, maintaining a cash dividend ratio of 30.02% [6]. - The company has adjusted its earnings per share (EPS) forecasts slightly for 2024 and 2025 to 0.82 yuan and 0.83 yuan, respectively, with an estimated net asset value per share of 12.69 yuan by the end of 2024. Based on the closing price on March 28, 2024, the corresponding price-to-book (PB) ratio for the end of 2024 is 0.32 times [6]. Summary by Sections Performance Overview - The company shows signs of recovery, with a revenue decline of 1.2% and a net profit growth of 1.6% for the full year of 2023. The revenue decline has narrowed compared to the first three quarters, and profit has achieved positive growth. In Q4, revenue increased by 1.9% year-on-year, and net profit growth surged to 50.6% [4][3]. - Net interest income decreased by 4.7% year-on-year, with a loan growth rate of 6.2%, indicating steady expansion. The annual interest margin is 1.46%, down 2 basis points quarter-on-quarter and 14 basis points year-on-year [4][3]. Asset Quality and Risk Management - The company has increased efforts in disposing of existing non-performing assets over the past three years, leading to a gradual clearance of the existing burden and a continued decline in newly generated non-performing loans [5][6]. - The provision coverage ratio has increased to 150%, while the loan-to-deposit ratio has decreased by 10 basis points to 2.22% [5][6]. Strategic Development - The company has achieved stable asset growth, with total assets increasing by 5.8% year-on-year and loan growth of 6.2% as of the end of 2023. The growth rates for corporate and retail loans are 9.1% and 1.5%, respectively [2][4]. - The company has implemented a new strategy for integrated development around strategic customers, conducting 101 customer business conferences throughout the year and increasing the number of corporate clients in chain financing by 19,000 [2][4].