EBSCN·2024-05-04 07:05Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to maintain a high level of profitability throughout the year, driven by strong retail loan growth primarily from small and micro loans and consumer loans [13][29] - As of the end of Q1 2024, the company's interest-earning assets and loans grew by 10.2% and 7.6% year-on-year, respectively, with a significant increase in credit and interbank assets [15][29] - The report highlights a trend of increasing deposit growth and a shift towards more term deposits, with total deposits growing by 9% year-on-year [16][29] Summary by Sections Financial Performance - In Q1 2024, the company achieved an operating income of 86.4 billion, down 4.7% year-on-year, and a net profit attributable to shareholders of 38.1 billion, down 2% year-on-year [7] - The net interest margin for Q1 2024 was 2.02%, a decrease of 13 basis points year-on-year, primarily due to a decline in the yield on interest-earning assets [9][29] Loan and Deposit Growth - Retail loan growth was primarily driven by small and micro loans (+42.7 billion) and consumer loans (+52.9 billion), while mortgage loans decreased by 14.9 billion [8][15] - The company’s total deposits increased by 9% year-on-year, with a notable shift towards term deposits, reflecting a trend of decreasing demand for demand deposits [16][29] Asset Quality - The company reported a credit impairment loss of 14.27 billion in Q1 2024, a decrease of 13.1% year-on-year, indicating improved asset quality [25][29] - The non-performing loan ratio was 0.92% at the end of Q1 2024, showing a slight improvement compared to previous quarters [27][29] Capital Adequacy - As of the end of Q1 2024, the company's core tier 1 capital adequacy ratio was 14.07%, reflecting a positive impact from the implementation of new capital regulations [27][29] Valuation and Forecast - The report forecasts EPS for 2024-2025 to be 6.05, 6.38, and 6.78 yuan, with the current stock price corresponding to a PB ratio of 0.84, 0.76, and 0.69 times [29] - The company is noted for having the highest increase in holdings among public funds in the banking sector, indicating strong investor interest [29]