Bank of Ningbo(002142) 华泰证券·2025-04-29 04:15Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 29.77 [9][10]. Core Insights - The company demonstrated strong credit expansion with a year-on-year increase in net profit, revenue, and pre-provision operating profit of 5.8%, 5.6%, and 9.7% respectively in Q1 2025, although these growth rates showed a slight decline compared to 2024 [1]. - The company has maintained robust asset growth, with total assets, loans, and deposits increasing by 17.6%, 20.4%, and 20.2% year-on-year as of the end of Q1 2025, supported by a strong loan issuance of RMB 164.1 billion in the first quarter [2]. - The net interest margin decreased to 1.80% in Q1 2025, down 6 basis points from the previous quarter, primarily due to the pressure from loan repricing and weaker retail demand [3]. - The non-performing loan (NPL) ratio remained stable at 0.76% as of the end of Q1 2025, with a slight improvement in the attention rate [4]. - The report forecasts net profit for 2025 to be RMB 28.86 billion, reflecting a year-on-year growth of 6.4%, with a projected price-to-book (PB) ratio of 0.85 times [5]. Summary by Sections Financial Performance - Q1 2025 showed a year-on-year increase in net profit of RMB 25.54 billion, revenue of RMB 61.59 billion, and pre-provision operating profit of RMB 36.84 billion [1][28]. - The company is expected to achieve a revenue of RMB 70.80 billion in 2025, with a growth rate of 6.26% [29]. Asset Quality - The NPL generation rate for Q1 2025 was 0.94%, showing a slight decrease from the previous year [4]. - The provision coverage ratio was reported at 371% as of the end of Q1 2025, indicating a strong buffer against potential loan losses [4]. Capital Adequacy - The core Tier 1 capital adequacy ratio decreased to 9.32% as of the end of Q1 2025, reflecting a slight decline in capital levels [4]. - The report anticipates a gradual improvement in capital ratios over the forecast period [28].