Bank of Ningbo(002142) 浙商证券·2025-04-29 10:48Investment Rating - The investment rating for the company is "Buy" [6] Core Views - In Q1 2025, the company achieved over 5% growth in both revenue and profit, with significant increases in loans and deposits, while the generation of non-performing loans slowed down [1][2] - The revenue growth rate of 5.6% in Q1 2025 was a decrease of 2.6 percentage points compared to 2024, and the net profit growth rate of 5.8% was a decrease of 0.5 percentage points compared to 2024 [2] - The company is expected to achieve mid-to-high single-digit growth in revenue and profit for the year 2025, supported by strong loan and deposit growth in Q1 [2][3] Summary by Relevant Sections Performance Overview - Q1 2025 revenue was 18,495 million, up 5.6% year-on-year, while net profit was 7,417 million, up 5.8% year-on-year [1][13] - The non-performing loan ratio remained stable at 0.76% as of the end of Q1 2025, with a provisioning coverage ratio decreasing by 19 percentage points to 371% [1][5] Profitability Growth - The company's net interest margin decreased by 8 basis points to 1.78% in Q1 2025, primarily due to a larger decline in asset yields compared to improvements in liability costs [4] - The increase in impairment losses was significant, with a year-on-year growth of 26.5% in Q1 2025 [2][4] Loan and Deposit Growth - In Q1 2025, the net increase in loans and deposits accounted for 73% and 128% of the total net increase for the entire year of 2024, respectively [3] Asset Quality - The generation of non-performing loans showed a slowdown, with the TTM non-performing loan generation rate decreasing by 9 basis points to 1.18% [5] Earnings Forecast and Valuation - The forecast for net profit growth from 2025 to 2027 is 7.71%, 7.83%, and 8.69%, respectively, with corresponding BPS of 34.19, 37.93, and 42.00 [6] - The target price is set at 34.19 CNY per share, corresponding to a PB of 1.00 for 2025, indicating a potential upside of 41% from the current price [6]