SPD BANK(SH:600000) GF SECURITIES·2024-05-05 02:02Investment Rating - The report assigns a "Buy" rating to the company with a reasonable value of 8.74 CNY per share, compared to the current price of 7.42 CNY [4]. Core Insights - The company reported a significant increase in dividend payout ratio, rising nearly 10 percentage points to 30% in 2023, compared to 21% in 2022 [3]. - The performance in Q1 2024 slightly exceeded investor expectations despite negative revenue and PPOP growth, with a year-on-year net profit increase of 10% [2][3]. - The asset quality continues to improve, with a non-performing loan (NPL) ratio of 1.45% as of March, down 3 basis points from December [3]. Summary by Relevant Sections Financial Performance - For 2023, the company reported a revenue growth rate of -8.1% and a net profit decline of 28.3%. However, Q1 2024 showed a recovery with a net profit growth of 10% [2][3]. - The net interest income decreased by 6.4% year-on-year in Q1 2024, an improvement from a 13.1% decline in Q4 2023 [3][12]. - The company’s return on equity (ROE) for Q1 2024 was 10.72%, reflecting a significant recovery from previous quarters [22]. Asset Quality - The NPL ratio improved to 1.45% as of March, with a provision coverage ratio of 173% [3][10]. - The new NPL generation rate decreased to 1.01%, down 34 basis points year-on-year [3][10]. Capital and Funding - The core Tier 1 capital adequacy ratio decreased to 8.83% as of March, down 14 basis points from the previous period [3][10]. - Total deposits decreased by 583 billion CNY in Q1 2024, primarily due to a reduction in corporate deposits [3][10]. Earnings Forecast - The company is expected to achieve net profit growth rates of 9.2% and 10.6% for 2023 and 2024, respectively, with earnings per share (EPS) projected at 1.18 CNY and 1.33 CNY [3][4].