Chongqing Rural Commercial Bank(601077) 民生证券·2024-10-30 08:46Investment Rating - The report maintains a "Recommended" rating for the company, with a target price corresponding to 0.5 times the 2024 PB based on the closing price on October 29, 2024 [4][6]. Core Views - The company has shown steady profit growth, with a year-on-year increase of 3.5% in net profit for the first three quarters of 2024, despite a slight decline in revenue [3][4]. - Asset quality continues to improve, with a decrease in the non-performing loan ratio to 1.17% and a high provision coverage ratio of 359% [3][4]. - The company is well-positioned for credit expansion, supported by significant local economic projects, and maintains a cash dividend payout ratio of at least 30% [4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a total revenue of 21.5 billion yuan, a year-on-year decrease of 1.8%, while net profit reached 10.3 billion yuan, reflecting a year-on-year increase of 3.5% [3]. - The net interest income decreased by 6.9%, while other non-interest income saw a significant increase of 39.1% [3]. - The total assets and loan amounts grew by 4.8% and 5.3% year-on-year, respectively, with public loans increasing by 9.7% and personal loans slightly declining by 0.4% [3][4]. Asset Quality and Risk Management - The non-performing loan ratio improved to 1.17%, down by 2 basis points from the end of the first half of 2024, indicating enhanced asset quality [3][4]. - The provision coverage ratio remains robust at 359%, reflecting strong risk mitigation capabilities [3][4]. Earnings Forecast - The expected earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 1.01 yuan, 1.07 yuan, and 1.13 yuan, respectively [4][30]. - The report anticipates a gradual increase in net profit growth rates, with estimates of 5.6% for 2024 and 5.5% for 2025 [30].