JRCB(SZ:002807) Haitong Securities·2024-04-13 16:00Investment Rating - The report maintains an "Outperform" rating for Jiangyin Bank [20][22]. Core Views - Jiangyin Bank's revenue and profit growth improved in Q4 2023, with a year-on-year revenue growth of 2.25% and a net profit growth of 16.83%. Q4 revenue increased by 8.85% compared to Q4 2022, and net profit grew by 19.03% in the same period [2][22]. - The bank's non-performing loan (NPL) ratio improved, remaining stable at 0.98% at the end of 2023, while the proportion of special mention loans decreased to 1.07% [3][22]. Summary by Sections Financial Performance - For the full year 2023, Jiangyin Bank reported a revenue of 3,865 million yuan and a net profit of 1,888 million yuan. The bank's average return on equity (ROE) was 12.87% [24][22]. - The bank's net interest margin for Q4 2023 was 2.06%, a slight decrease of 1 basis point from Q3 2023 [2][22]. Business Development - The bank's inclusive finance business showed rapid growth, with a total of 2.62 billion yuan in agricultural loans benefiting 883 agricultural enterprises by the end of 2023. The bank also engaged in various competitions to enhance customer service, visiting over 21,200 clients [2][22]. Asset Quality - The NPL ratio remained stable at 0.98% at the end of 2023, with a coverage ratio of 409.46% [3][22]. - The bank's loan growth was 11.85% in 2023, with a projected growth of 14% for the following years [35][22]. Valuation - The report estimates the reasonable value of Jiangyin Bank's shares to be between 5.30 and 5.42 yuan, based on the Dividend Discount Model (DDM) and Price-to-Book (PB) ratio [22][24].