BOB(SH:601169) Ping An Securities·2024-04-30 03:00Investment Rating - The investment rating for the company is "Recommended" [1] Core Views - The company has shown a significant recovery in revenue growth, with a 7.8% year-on-year increase in Q1 2024, compared to only 0.7% in the same period of 2023. This improvement is primarily driven by a rebound in non-interest income, which increased by 51% year-on-year, benefiting from a decline in bond yields [3][5] - The company's net profit attributable to shareholders for Q1 2024 was 78.6 billion yuan, reflecting a 5.0% year-on-year growth, which is an improvement of 1.5 percentage points compared to the previous year [2][3] - The total assets of the company reached 3.89 trillion yuan by the end of Q1 2024, marking a 3.89% increase since the beginning of the year, with loans and deposits growing by 5.18% and 5.36% respectively [2][3] Summary by Relevant Sections Financial Performance - The company reported a net operating income of 177 billion yuan in Q1 2024, with a year-on-year growth of 7.8% [2][3] - The net interest income increased by 1.9% year-on-year, showing a recovery from a decline of 2.2% in the previous year [3][6] - The return on equity (ROE) is projected to decline slightly from 11.1% in 2022 to 10.4% in 2024, with earnings per share (EPS) expected to grow from 1.17 yuan in 2022 to 1.27 yuan in 2024 [2][5] Asset and Liability Management - The company has optimized its asset-liability structure, with a net interest margin of 1.37% in Q1 2024, a slight decrease of 5 basis points from the previous quarter [3][5] - Total loans increased to 2.12 trillion yuan, representing a year-on-year growth of 11.6% [6][8] - Customer deposits reached 2.18 trillion yuan, with a year-on-year growth of 9.3% [6][8] Future Outlook - The company is expected to continue its retail transformation, which has led to improved income and asset structure. The forecast for EPS growth is 4.6% in 2024, 5.4% in 2025, and 6.5% in 2026 [5][8] - The stock is currently trading at a price-to-book (P/B) ratio of 0.44x for 2024, indicating a sufficient margin of safety in valuation [5][8]