Changjiang Securities·2024-04-30 05:32Investment Rating - The investment rating for the company is "Buy" and is maintained [3][4]. Core Views - The company's Q1 2024 revenue growth rate is -0.03% year-on-year, while the net profit attributable to the parent company increased by 1.4%, indicating revenue resilience that exceeded market expectations [4][5]. - Loan growth in Q1 2024 was 3.1%, with corporate and retail loans growing by 4.9% and 1.2% respectively. Deposits (including interest) increased by 1.5% [4][5]. - The net interest margin (NIM) for Q1 2024 was 1.27%, showing a quarter-on-quarter increase of 5 basis points, with a minimal decline of 1 basis point compared to the entire year of 2023 [5][6]. - The non-performing loan (NPL) ratio at the end of Q1 2024 was 1.32%, a decrease of 1 basis point from the previous quarter, with a provision coverage ratio of 197%, up 2 percentage points [4][5]. Summary by Sections Revenue and Profitability - Q1 2024 revenue growth was -0.03%, while net profit growth was 1.4%. Interest income grew by 2.2% year-on-year, contrasting with a decline of 3.4% in 2023. Fee income decreased by 6.4% due to reduced agency fees [4][5]. - The cost-to-income ratio slightly decreased, and credit impairment losses were lower, supporting profit growth [5]. Loan and Deposit Trends - Total loans grew by 3.1% compared to the beginning of the year, with corporate loans increasing by 4.9% and retail loans by 1.2%. The total deposit amount grew by 1.5%, with a notable increase in personal deposits [4][5]. Net Interest Margin and Asset Quality - The NIM showed resilience, with a quarter-on-quarter increase attributed to improved deposit costs. The asset yield is expected to decline due to repricing and LPR adjustments, but the impact is mitigated by a lower proportion of mortgages [5][6]. - The NPL ratio improved to 1.32%, with a provision coverage ratio of 197%, indicating a stable asset quality [4][5]. Investment Outlook - The company is viewed as a high-dividend, undervalued bank that has been overlooked. The expected revenue growth for 2024 is 1%, with net profit growth of 2%. The A-share valuation is at 0.52x 2024 PB, with a dividend yield of 5.5% [5][6].