Suzhou Rural Commercial Bank(SH:603323) INDUSTRIAL SECURITIES·2024-04-30 02:02Investment Rating - The report initiates coverage with a "Buy" rating for the company, expecting a price-to-book (PB) ratio of 0.49 by the end of 2024 [2][11]. Core Insights - The company's net interest margin for 2023 is 1.74%, a decrease of 30 basis points year-on-year, primarily due to a 47 basis point drop in loan yield to 4.30% influenced by LPR adjustments and lower mortgage rates [10][11]. - Asset quality is improving, with a non-performing loan (NPL) ratio stable at 0.91% at the end of 2023 and Q1 2024, while the attention rate decreased to 1.06% in Q1 2024 [10][11]. - The company reported a net profit of 1.74 billion yuan for 2023, a 16% increase year-on-year, and a Q1 2024 net profit of 410 million yuan, up 15.8% year-on-year [13][14]. Financial Performance Summary - Total assets as of the end of 2023 were 202.57 billion yuan, with a year-on-year growth of 12.4%, and loans increased by 12.3% [15][16]. - The company expects earnings per share (EPS) of 1.07 yuan for 2024 and 1.15 yuan for 2025, with a projected net asset value of 9.74 yuan by the end of 2024 [11][12]. - The capital adequacy ratios as of Q1 2024 are 10.10% for core tier 1 capital, 10.11% for tier 1 capital, and 11.75% for total capital [11].