BANK COMM(601328) 海通国际·2024-05-27 09:30Investment Rating - The report maintains an "Outperform" rating for Bank of Communications [1][11][12] Core Insights - The Q1 2024 report shows a slight revenue decrease of 0.03% YoY, while net profit attributable to shareholders increased by 1.44% YoY. The non-performing loan (NPL) ratio decreased, and the core Tier 1 capital adequacy ratio continued to rise [1][11][12] - Profitability metrics remain stable, with an annualized return on assets (ROA) of 0.71% and a return on equity (ROE) of 10.79%. The core Tier 1 capital adequacy ratio rose by 21 basis points to 10.44%, continuing an upward trend since Q2 2023 [1][11][12] - Asset quality has shown continuous improvement, with the NPL ratio decreasing by 1 basis point to 1.32% QoQ, and the provision coverage ratio increasing by 1.84 percentage points to 197.05%. The corporate loan NPL ratio fell by 7 basis points to 1.58% [1][11][12] Financial Performance Summary - Total assets grew by 1.3%, loans by 3.1%, and deposits by 1.5% compared to the end of 2023. Demand deposits accounted for 34.41%, up 8 basis points QoQ [1][12] - The forecast for EPS from 2024 to 2026 is RMB 1.16, 1.20, and 1.25, with net profit growth rates of 0.95%, 3.10%, and 3.68% respectively. The fair value based on the DDM model is RMB 7.73, and the PB-ROE model gives a valuation of RMB 7.85 [1][12]