Chongqing Rural Commercial Bank(601077) 中泰证券·2024-04-29 09:00Investment Rating - The report maintains an "Accumulate" rating for the company with a market price of 4.55 [1]. Core Insights - The company has strengthened cost control, resulting in a year-on-year increase in PPOP of 5.4%. However, net profit experienced a negative growth of 10.8% due to one-time factors from the previous year [5][10]. - The company is focusing on expanding infrastructure loans in response to the development of three trillion-level industrial clusters in Chongqing and the Chengdu-Chongqing economic circle [7][28]. - The company has a stable dividend history and a high dividend yield, making it an attractive investment opportunity [28]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue (in million) for 2022A was 28,956, with a projected decline to 27,902 in 2023A and further to 27,058 in 2024E [1]. - Net profit (in million) is expected to grow from 10,900 in 2023A to 11,501 in 2024E, with a growth rate of 6.1% [1]. - Earnings per share (EPS) is projected to increase from 0.96 in 2023A to 1.01 in 2024E [1]. - Key Financial Ratios: - The Price-to-Earnings (P/E) ratio is forecasted to decrease from 4.74 in 2023A to 4.49 in 2024E [1]. - The Price-to-Book (P/B) ratio is expected to remain stable at 0.42 for 2024E [1]. Operational Insights - Net Interest Income: - In Q1, net interest income decreased by 0.5% quarter-on-quarter, with an annualized interest margin of 1.62%, down 3 basis points [19]. - The asset yield decreased to 3.5%, while the liability interest rate fell to 1.94%, contributing to the stability of the interest margin [19]. - Asset Quality: - The non-performing loan (NPL) ratio remained stable at 1.19%, with a year-on-year decline in the annualized net generation rate of NPLs to 0.34% [26][27]. - The provision coverage ratio increased to 367.54%, indicating a strengthening of risk buffers [26][27]. - Loan and Deposit Growth: - The company issued loans totaling 202.6 billion in Q1, with corporate loans making up 77% of the total [21]. - New deposits amounted to 553.6 billion, with the deposit ratio increasing to 71.0% [23]. Investment Recommendations - The report suggests actively monitoring the company due to its strategic positioning in the Chongqing market and its potential for profit release as historical non-performing assets are cleared [28].