CMBC(600016) 天风证券·2024-09-14 06:03Investment Rating - The report upgrades the investment rating to "Buy" with a target price of 4.11 CNY, representing a potential upside of 23% from the current price of 3.32 CNY [6][3]. Core Insights - The report indicates that the company has shown signs of improvement in profitability, with a marginal reduction in revenue decline and stabilization of net interest margin [8][11]. - The asset quality is stabilizing, with a non-performing loan (NPL) ratio of 1.47% and an increase in the loan provision coverage ratio to 149.3% [20][22]. - The company is adjusting its asset structure to favor lending to the real economy, with a total earning assets amounting to 74,527 billion CNY, a slight decrease of 1.3% from the previous quarter [16][17]. Financial Performance Summary - Revenue for the first half of 2024 was 671 billion CNY, down 6.17% year-on-year, showing improvement from a 6.8% decline in the first quarter [8][11]. - Net profit attributable to shareholders was 225 billion CNY, a decrease of 5.48% year-on-year, also showing slight improvement from the previous quarter [8][11]. - The net interest margin for the first half of 2024 was stable at 1.38%, indicating a potential for gradual stabilization [11][12]. Asset Quality and Risk Management - The NPL balance stood at 649 billion CNY, with a net generation rate of 2.03% for the quarter, showing improvement compared to previous periods [20][21]. - The loan provision rate increased to 2.19%, maintaining a safety margin, while the NPL coverage ratio slightly decreased [20][21]. Shareholder Changes - The largest shareholder, Hong Kong Central Clearing Limited, increased its stake by 0.01 percentage points to 18.93% [22].