BANK COMM(601328) 广发证券·2024-04-28 03:02Investment Rating - The investment rating for the company is "Buy - A / Buy - H" [2] Core Insights - The company reported a slight decline in revenue and a modest increase in net profit for Q1 2024, with year-on-year changes of -0.03% in revenue, 0.2% in PPOP, and 1.4% in net profit attributable to shareholders. The growth rates compared to 2023 showed changes of -0.34 percentage points, 1.90 percentage points, and 0.76 percentage points respectively [3] - Key highlights include a quarter-on-quarter recovery in net interest margin, which stood at 1.27%, a decrease of only 1 basis point from 2023 but an increase of 5 basis points from Q4 2023. This recovery is attributed to a 2.1% year-on-year growth in deposits and a favorable shift in the deposit structure [3] - The overall asset quality remains stable, with a non-performing loan ratio of 1.32%, down 1 basis point from 2023. The provision coverage ratio improved to 197.05%, reflecting a stable safety cushion [3] Summary by Sections Financial Performance - For Q1 2024, the company experienced a year-on-year revenue growth of -0.03%, PPOP growth of 0.2%, and a net profit growth of 1.4%. The cumulative performance showed a decline in revenue growth rate by 0.34 percentage points compared to 2023 [3][10] - The net interest income saw a year-on-year decline of 4.4%, while non-interest income experienced a significant drop of 17.3% [10] Asset Quality - The non-performing loan ratio was reported at 1.32%, a decrease of 1 basis point from the previous year. The company effectively managed new non-performing loans, maintaining a stable generation rate of 0.50% [3][10] - The provision coverage ratio increased to 197.05%, indicating a solid buffer against potential loan losses [3] Market Position and Valuation - The current stock price is 6.85 CNY, with a fair value estimate of 8.56 CNY, suggesting an upside potential. The price-to-earnings ratio for 2024 and 2025 is projected at 5.83X and 5.67X respectively, while the price-to-book ratio is estimated at 0.52X and 0.49X [2][3]