Bank of RuiFeng(SH:601528) Haitong Securities·2024-04-06 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][10]. Core Views - The report highlights that Ruifeng Bank achieved a year-on-year revenue growth of 7.90% for the entire year of 2023, with a notable 10.58% growth in Q4 compared to Q4 2022. The net profit attributable to the parent company increased by 13.04% year-on-year [3][10]. - The asset quality of Ruifeng Bank continues to improve, with a non-performing loan ratio of 0.97% at the end of 2023, down by 1 basis point from Q3 2023. The coverage ratio for provisions was 304.12%, slightly up from 299.77% in Q3 [4][10]. - The bank's inclusive finance and technology innovation businesses are developing further, with inclusive small and micro loans reaching 45.205 billion yuan, an increase of 28.66% year-on-year [11][10]. Financial Performance Summary - For 2023, the operating income was 38.04 billion yuan, with a year-on-year growth of 7.90%. The net profit was 17.27 billion yuan, reflecting a growth of 13.04% [12]. - The forecast for EPS from 2024 to 2026 is 0.98, 1.09, and 1.19 yuan respectively, with net profit growth rates of 11.44%, 11.38%, and 9.18% [11][12]. - The bank's average return on equity (ROE) for 2023 was 10.95%, projected to increase slightly in the following years [12][25]. Valuation Metrics - The report estimates a reasonable value range for the bank between 6.22 and 6.96 yuan based on DDM and PB-ROE models, with corresponding PE ratios for 2024 estimated at 6.35-7.10 times [11][12]. - The bank's price-to-book (PB) ratio for 2024 is estimated at 0.75 times, compared to a peer average of 0.52 times [11][12].