CM BANK(600036) 海通证券·2024-09-17 06:11Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Insights - The company's net profit growth rate has improved compared to Q1, with a focus on expanding credit in key areas, and overall asset quality remains stable [3]. - The company actively implements national strategic directives, increasing loan allocations to key sectors, resulting in significant growth in green credit and loans to small and micro enterprises [3]. - The overall asset quality is stable, with a slight increase in the non-performing loan ratio, while the non-performing loan ratio for corporate loans has decreased [3]. Financial Performance Summary - For the first half of 2024, the company's revenue is projected to decline by 3.09% year-on-year, while net profit is expected to decrease by 1.33%, showing improvement from Q1 [4]. - The core Tier 1 capital adequacy ratio for Q2 2024 is 13.86%, an increase of 0.77 percentage points year-on-year [3]. - The company forecasts earnings per share (EPS) for 2024-2026 to be 5.8, 6.16, and 6.47 yuan, with net profit growth rates of 2.03%, 6.17%, and 4.98% respectively [4]. Valuation Metrics - The reasonable value range for the company is estimated between 34.59 and 36.15 yuan, corresponding to a 2024 price-to-earnings (PE) ratio of 5.96-6.23 times [4]. - The company is assigned a price-to-book (PB) ratio of 0.90 times for 2024E, compared to a peer average of 0.41 times [4].