Chongqing Rural Commercial Bank(601077) 东方证券·2024-10-30 03:39Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 7.20 CNY per share, reflecting a 10% valuation premium over the average adjusted PB of comparable companies [2][5]. Core Insights - Revenue growth has slightly declined, but net interest income growth shows marginal improvement. As of Q3 2024, the company's revenue, PPOP, and net profit attributable to the parent company have decreased year-on-year growth rates to 1.8%, 3.6%, and 3.5% respectively, with net profit growth declining more than revenue due to the timing of bad asset recoveries [1]. - Loan growth has marginally increased, benefiting from regional strategies and accelerated debt resolution. Total asset growth has decreased slightly to 4.8%, while loan growth has improved to 5.3%, primarily driven by corporate loans [1]. - The non-performing loan ratio has decreased, providing ample room for profit replenishment. The non-performing loan ratio fell to 1.17%, the lowest since 2018, with a slight decline in the provision coverage ratio to 358.6% [1]. Financial Summary - The company forecasts net profit growth rates of 6.3%, 5.6%, and 8.0% for 2024, 2025, and 2026 respectively, with EPS projected at 1.00, 1.06, and 1.14 CNY [2]. - Key financial metrics include a projected PB of 0.53, 0.49, and 0.46 for 2024, 2025, and 2026, respectively, indicating a stable valuation outlook [2]. - The company reported a net interest margin of 1.61% for Q3 2024, with a limited narrowing of the margin and a solidified cost advantage in liabilities [1].