BANK OF QINGDAO(002948) 光大证券·2024-10-29 03:42Investment Rating - Buy (maintained) with a current price of 3.71 RMB [1] Core Views - Qingdao Bank's revenue and net profit maintained double-digit growth, with revenue reaching 10.49 billion RMB, up 8.1% YoY, and net profit attributable to shareholders reaching 3.46 billion RMB, up 15.6% YoY [4] - The bank's asset quality remained stable, with a non-performing loan (NPL) ratio of 1.17% and a provision coverage ratio of 245.7% [10] - The bank's net interest margin (NIM) narrowed slightly to 1.75%, down 2bps from the first half of 2024, but cost control measures helped mitigate the impact [9] - The bank's capital adequacy ratios remained strong, with core Tier 1 capital adequacy at 8.9%, Tier 1 capital adequacy at 10.5%, and total capital adequacy at 13.2% [10] Financial Performance - Revenue growth slowed slightly, with pre-provision operating profit (PPOP) and net profit growing at 8.5% and 15.6% YoY, respectively [6] - Net interest income grew by 5.6% YoY, while non-interest income grew by 14.4% YoY, though the growth rate of non-interest income slowed compared to the first half of 2024 [6] - The cost-to-income ratio improved to 28.3%, down 1 percentage point YoY, reflecting effective cost control measures [6] Asset and Liability Structure - Total assets grew by 15.1% YoY, with interest-earning assets and loans growing by 12.6% and 11.3% YoY, respectively [3] - Corporate loans (including discounts) grew by 14.9% YoY, while retail loans decreased by 6 billion RMB, reflecting pressure in the retail lending sector [6] - Deposits grew by 12.9% YoY, with corporate and personal deposits increasing by 79 billion RMB and 90 billion RMB, respectively, in the third quarter [6] Credit and Risk Management - The bank's NPL ratio remained stable at 1.17%, with a provision coverage ratio of 245.7%, indicating strong risk resilience [10] - The bank's risk-weighted assets (RWA) growth slowed to 7.3% YoY, reducing capital consumption and enhancing capital safety margins [10] Strategic Focus - Qingdao Bank is focusing on structural adjustment, customer base strengthening, synergy optimization, and capability enhancement as part of its 2023-2025 strategic plan [11] - The bank aims to become a leading value bank with superior efficiency, distinctive features, and flexible mechanisms [11] Valuation and Forecast - The bank's EPS for 2024-2026 is forecasted at 0.68, 0.74, and 0.79 RMB, respectively, with a current PB ratio of 0.6x and a PE ratio of 5.45x [11] - The bank's ROE is expected to remain stable at around 11.5% over the next three years [12]