SPD BANK(SH:600000) Guoxin Securities·2024-05-30 10:02Investment Rating - The report assigns a "Neutral" rating for the company, marking the first coverage [4][39]. Core Views - The report highlights that the net profit growth of the company from 2021 to 2023 has been below the overall level of listed banks, primarily due to high asset impairment losses and slow growth in interest-earning assets [12][28]. - The company's non-performing loan generation rate has recently decreased to near the average level of joint-stock banks, but future asset quality trends remain to be observed [25][28]. - In Q1 2024, the company reported a net profit of 17.4 billion yuan, a year-on-year increase of 10.0%, attributed mainly to a reduction in asset impairment losses [28][39]. Summary by Sections Financial Performance - The company achieved operating income of 45.3 billion yuan in Q1 2024, a decrease of 5.7% year-on-year, while net profit reached 17.4 billion yuan, reflecting a 10.0% increase due to a 20.1% reduction in asset impairment losses [28][39]. - The total assets as of Q1 2024 stood at 9.05 trillion yuan, with a year-on-year growth of 2.2% [28]. Profit Forecast - The forecast for net profit from 2024 to 2026 is 40.4 billion, 42.5 billion, and 45.5 billion yuan, respectively, with year-on-year growth rates of 10.1%, 5.1%, and 7.0% [30][31]. - The diluted EPS for the same period is projected to be 1.19, 1.26, and 1.37 yuan [31]. Valuation - The report estimates the reasonable stock price for 2024 to be between 7.8 and 9.4 yuan, with a dynamic price-to-book ratio (PB) of 0.36 to 0.43 [39]. - The current stock price of 8.49 yuan is considered reasonably valued based on the analysis [39].