Investment Rating - The investment rating for Minsheng Bank is "Accumulate" [1] Core Views - The report indicates a recovery trend in revenue and net profit for Minsheng Bank in 2023, with a notable increase in small and micro loans and a decrease in non-performing loan (NPL) ratio [4] - The target price is set at HKD 3.96, corresponding to a price-to-book (PB) ratio of 0.29 for 2024, maintaining the "Accumulate" rating [4] Summary by Sections Financial Performance - In 2023, revenue decreased by 1.2% year-on-year, a significant improvement compared to a 15.6% decline in 2022, with other non-interest income growing by 29.9% [4] - Net profit increased by 1.6%, indicating stable profitability [4] - The small and micro loan portfolio reached nearly RMB 800 billion, growing by 15.8%, with the balance of inclusive small and micro enterprise loans at RMB 612.27 billion, up by 11.51% [4] Asset Quality - The NPL ratio decreased by 56 basis points to 1.14%, with both NPL ratio and balance declining for five consecutive quarters [4] - The provision coverage ratio rose by 0.5 percentage points to 149.69%, enhancing risk mitigation capabilities [4] - The NPL ratio for corporate loans decreased by 22 basis points to 1.46%, with notable reductions in the manufacturing, real estate, and mining sectors [4] Interest Margin and Cost - The net interest margin for 2023 was 1.46%, down by 2 basis points from the first half of the year, with pressure expected on the interest margin due to declining asset yields and relatively rigid liability costs [4]
小微特色鲜明，资产质量继续向好