CEB BANK(601818) Huachuang Securities·2024-09-02 03:23Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 4.34 CNY, compared to the current price of 3.06 CNY [2][9]. Core Views - The company's revenue for the first half of 2024 (24H1) was 69.808 billion CNY, a year-on-year decrease of 8.77%, while the net profit attributable to shareholders was 24.487 billion CNY, an increase of 1.72% year-on-year [2][3]. - The non-performing loan ratio remained stable at 1.25%, with a provision coverage ratio of 172.45% [2][3]. - The bank's net interest income faced pressure, with a year-on-year decline of 12.5% in Q2, but the decline in interest margin has narrowed significantly [3][9]. - Non-interest income showed improvement, with a 33.83% increase in other non-interest income, primarily due to increased investment income [3][9]. - The bank's retail loan growth was weak, with a 1.7% decrease in retail loans, while corporate loans grew by 7.9% [3][9]. Summary by Relevant Sections Financial Performance - For 24H1, the bank's operating income was 69.808 billion CNY, down 8.77% year-on-year, while net profit attributable to shareholders was 24.487 billion CNY, up 1.72% year-on-year [2][3]. - The bank's net interest income for Q2 was 23.919 billion CNY, reflecting a year-on-year decline of 12.5% and a quarter-on-quarter decline of 1.1% [3][9]. - The annualized net interest margin for Q2 was 1.52%, with the asset yield under pressure at 3.72% [3][9]. Asset Quality - The non-performing loan ratio was stable at 1.25%, with a slight increase in the annualized net generation rate to 1.67% [3][9]. - The provision coverage ratio decreased by 8.8 percentage points to 172.45% [3][9]. - The bank has improved its asset quality over the years, with a notable decrease from a high of 1.6% in 2016 [3][9]. Loan Growth - Total loans increased by 4% year-on-year, with corporate loans growing by 7.9% and retail loans decreasing by 1.7% [3][9]. - The bank has focused on increasing loans to the manufacturing sector and private enterprises, with manufacturing loans up 15.9% year-to-date [3][9]. - Retail loan demand remains weak, with a significant reduction in credit card loans and mortgage demand [3][9]. Future Outlook - The bank's revenue growth is projected to be -3.2% in 2024, followed by 3.3% in 2025 and 6.3% in 2026 [9][10]. - The net profit growth is expected to be -4.6% in 2024, with a gradual recovery in subsequent years [9][10]. - The current dividend yield is 5.65%, indicating good investment value [9].