QILU BANK(601665) 信达证券·2024-10-31 08:30Investment Rating - The report maintains an "Overweight" rating for Qilu Bank [1] Core Views - Qilu Bank's net profit growth accelerated in Q3 2024, with net profit attributable to parent company reaching RMB 3.442 billion, up 17.19% YoY [1] - The bank's asset expansion exceeded 17%, with total assets reaching RMB 668.1 billion by Q3 2024, a 17.5% YoY increase [1] - Qilu Bank's non-performing loan ratio decreased to 1.23% by Q3 2024, with provision coverage ratio rising to 312.74% [1] - The bank's core tier 1 capital adequacy ratio improved to 10.26% in Q3 2024, providing solid foundation for future expansion [1] Financial Performance - Qilu Bank achieved operating income of RMB 9.485 billion in the first three quarters of 2024, representing a 4.26% YoY growth [1] - The bank's net investment income and net fee income increased by 9.7% and 17.6% respectively in Q1-Q3 2024 [1] - Annualized ROE reached 11.96% in Q3 2024, up 0.11 percentage points YoY [1] Business Development - Loan balance reached RMB 332.5 billion by Q3 2024, with corporate loans growing 16% YoY and retail loans increasing 5.03% [1] - The bank expanded its network with 28 new outlets established between 2021-2023, including the newly opened Heze branch in June 2024 [1] - Qilu Bank focuses on key sectors including inclusive finance, green finance, and manufacturing [1] Future Projections - The report forecasts net profit attributable to parent company growth of 15.2%, 17.7%, and 17.3% for 2024-2026 respectively [2] - EPS is projected to reach RMB 1.01, 1.19, and 1.38 for 2024-2026 [2] - The bank's asset scale is expected to maintain rapid growth, with total assets projected to reach RMB 960.306 billion by 2026 [6] Capital Management - The convertible bond conversion ratio reached 17.44%, potentially further strengthening core capital [2] - Dividend payout ratio increased to 26.7% in 2023, up 1.2 percentage points from 2022 [1]