Investment Rating - The investment rating for the company is maintained as "Accumulate" [3] Core Views - The company's net profit attributable to shareholders has turned positive with a year-on-year growth of 3.4% in Q2 2025, compared to a decline of 3.6% in Q1 [2] - Total assets grew by 2.6% year-on-year, with loans increasing by 4.3% and financial investments by 9.6% as of the end of H1 2025 [2] - The asset quality indicators remain stable, with a non-performing loan ratio of 1.08% and a provision coverage ratio of 229% [2] - The major shareholder has increased their stake by converting convertible bonds, which could enhance the core Tier 1 capital adequacy ratio by approximately 0.5% [3] - Profit forecasts for 2025-2027 remain unchanged, with net profits projected at 779 billion, 786 billion, and 794 billion respectively, reflecting growth rates of 0.96%, 0.8%, and 1% [3][4] Summary by Sections Financial Performance - Q2 2025 revenue decreased by 0.9% year-on-year, while H1 2025 revenue showed a decline of 2.3% [2] - The net profit for H1 2025 showed a slight increase of 0.2% year-on-year [2] Asset Quality - The non-performing loan ratio is stable at 1.08%, with significant reductions in new non-performing loans in corporate real estate and credit cards [2] - The overdue rate for credit cards is 5.57%, down by 0.75% from the end of the previous year [2] Capital Structure - The core Tier 1 capital adequacy ratio is reported at 9.54%, a decrease of 21 basis points from the beginning of the year [2] - If the remaining convertible bonds are fully converted, the core Tier 1 capital adequacy ratio could increase to approximately 10.04% [3] Earnings Forecast - The projected earnings per share for 2025-2027 are 3.68, 3.71, and 3.75 respectively, with corresponding price-to-earnings ratios of 6.08, 6.04, and 5.98 [4]