Guotai Junan Securities·2024-04-30 14:32Investment Rating - The investment rating for the company is "Buy" with a target price of 7.00, maintaining the previous rating of "Buy" [20][8]. Core Views - The company's performance is stable, with solid asset quality and a significant increase in loans, particularly in corporate lending, leading to an improved deposit structure [8][9]. - The report indicates a projected net profit growth rate of 0.43% for 2024, with EPS estimates of 0.98 for 2023 and 0.99 for 2024 [8][11]. - The bank's net interest margin has shown signs of recovery, and the overall asset quality remains robust, with a non-performing loan ratio of 1.36% [11][9]. Summary by Sections Financial Performance - The bank's operating income for 2023 is projected at 843,070 million, a decrease of 3.73% from the previous year [11]. - The net profit attributable to the parent company is expected to be 363,993 million in 2023, reflecting a growth of 0.79% [11]. - The bank's total assets are forecasted to reach 44,697,079 million by the end of 2023, with a loan balance of 26,086,482 million [11]. Profitability Metrics - The return on equity (ROE) is projected to decline to 10.67% in 2023, with a further decrease expected in subsequent years [11]. - The net interest margin is expected to stabilize around 1.60% for 2024, indicating a slight recovery from previous declines [11]. Asset Quality - The non-performing loan balance is anticipated to rise to 353,502 million by the end of 2023, with a non-performing loan ratio of 1.36% [11]. - The provision coverage ratio is projected to be 214% in 2023, indicating a strong buffer against potential loan losses [11]. Market Position - The company is recognized as one of the largest commercial banks in China, with a diverse business structure and a strong customer base [9]. - The bank continues to focus on serving the real economy and managing risks effectively, aiming for sustainable growth [9].