Bank Of Jiangsu(600919) 海通证券·2024-08-22 10:10Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company has shown rapid revenue growth with a 7.16% year-on-year increase in operating income and a 10.05% increase in net profit attributable to shareholders for the first half of 2024. The net profit for Q2 2024 increased by 10.08% year-on-year [3][4] - The company's public business is developing rapidly, with a significant increase in public deposits and loans, indicating strong performance in corporate banking [3][4] - The company maintains stable asset quality, with a non-performing loan ratio of 0.89% in Q2 2024, a slight decrease from the previous quarter [4] Summary by Sections Financial Performance - For the first half of 2024, the company reported operating income of 74,293 million yuan, a 7.16% increase year-on-year, and a net profit of 28,750 million yuan, reflecting a 10.05% increase year-on-year. The projected EPS for 2024-2026 is 1.65, 1.81, and 1.98 yuan respectively [5][12] - The company plans to increase shareholder returns through a mid-term dividend, with a proposed dividend of 0.47 yuan per share for 2023 [3][5] Business Development - The company focuses on strengthening its corporate business and has seen public deposits reach 1,149 billion yuan, a 23.37% increase from the end of 2023, and public loans of 1,306.7 billion yuan, a 17.81% increase [3][4] - The company is enhancing its service offerings in transaction banking, inclusive finance, cross-border finance, and bond underwriting [3] Asset Quality - The non-performing loan ratio is reported at 0.89%, down 2 basis points from the previous quarter, while the provision coverage ratio stands at 357.20%, a decrease of 14.02 percentage points [4] - The overdue loan ratio increased slightly to 1.12% compared to the end of 2023 [4] Valuation - The reasonable value range for the company is estimated between 10.12 and 10.58 yuan, with a projected PB of 0.80 times for 2024 [4][12] - The company is expected to maintain a net profit growth rate of 10.74%, 9.33%, and 8.96% for the years 2024-2026 [4][12]