瑞丰银行（601528）：资产大幅扩张；成本优化

AssetExpanded Robustly; CostOptimized BUY6.60 Huatai Research Quarterly Results Review 18 May 2025│China (Mainland) Regional Banks AnalystSHEN JuanSAC No. S0570514040002SFC No. BPN843shenjuan@htsc.com+(86) 7552395 2763 In3M25, the attributable net profit (NP)/revenue of RuiFeng Rural CommercialBank(RuiFengRCB)grew6.7/5.1yoy(-4.6/-10.2ppvs2024);annualizedROE/ROAdropped0.46/0.04ppyoyto8.96/0.76%.The1Q25operationalhighlights include: resilient net interest margin (NIM), and stable non-performingloan (NPL) ratio and enhanced NPL provision coverage ratio. Having said that,other non-interest incomegrowth decelerated a bit.The company’s strategictransformation has been effective, with significant business expansion potential.Maintain BUY. AnalystHE YatingSAC No. S0570524070008SFC No. BUB018heyating@htsc.com+(86) 10 6321 1166 AnalystPU JiayiSAC No. S0570123070039SFC No. BVL774pujiayi@htsc.com+(86) 755 8249 2388 Credit mix optimized; NIM resilientAsofend-March2025,RuiFengRCB's Key data totalassets/loans/depositsgrewby11.1/11.7/13.7% yoy (-0.9/-3.8/+0.8pp vs end-2024). While credit supply growthslowed in 1Q25 following the front-loaded marketing events in early 2025, thecredit mix was an optimized one.Net additions in new loans were RMB5.8bnin1Q25, with retailloans/corporate loans/bill financingaccounting for6/86/9%. The1Q25 NIM fell 4bp vs 2024 to 1.46%, a resilient performance considering therepricing in early 2025, which boosted its net interest income by 2.7% yoy. Atend-3M25, theratio of demand depositsfell 3.7ppvs end-2024to 25.2%, withliabilitycost improvement likely driven by tailwinds from listed rate adjustments, inour view. Other non-interest income volatile; cost optimizedThe 1Q25 non-interest income grew 11.4% yoy (2024:+84.3% yoy). Notably, othernon-interest income came up 6.9% yoy (2024:+75.9%yoy), while net investmentincome/net gains from fair value changes were RMB+410/-130mn, a decelerationamid the high base (in 1Q24) and bond market volatility in 1Q25. The 1Q25 feeincome surged 419.1% yoy, with revenue contribution up by 1.2pp yoy to 1.5%;cost-to-income ratio improved by 3.2pp yoy to 27.3%. Source:Wind Provision coverage up; capital adequacy ratio (CAR)downAt end-March2025, the NPL ratio/NPL coverage ratio were 0.97/326% (flat/ +5ppvs end-2024). Our estimated 1Q25 annualized credit cost edged up 0.01pp yoy to1.25%, while we estimate 1Q25 annualized NPL formation ratio increased 0.39ppqoq to 0.62%.At end-3M25,special mention loan ratiorose0.09ppvs end-2024 to1.54%, reflectingvolatilityin forward-looking risk;CAR/core tier-1 CAR came in at14.05/12.85%(-0.82/-0.82pp qoq), mirroring a marginal decline. Value the stock at 0.65x 2025E PBWemaintainour2025/2026/2027 attributableNPestimatesatRMB2.05/2.18/2.33bn(up6.5/6.5/6.9%yoy),withBVPSestimatesatRMB10.15/11.04/12.00,implyinga2025PBof0.52x.Giventhecompany’seffective strategic transformation and expansion potential, we value the stock at0.65x2025EPB(unchanged),aboveitspeers’averageof0.56xonWindconsensus, for ourunchangedtarget price of RMB6.60. Maintain BUY. Risks: soft demand recovery;SMEasset quality deteriorating more than weexpect. Financials Source:Wind,Huatai Research Source:Wind,Huatai Research Full financials Disclaimers Analyst CertificationI/We, SHEN Juan, HE Yating, PU Jiayi, hereby certify that the views expressed in this report accurately reflect the personal viewsof the analyst(s) aboutthe subject securities or issuers; and no part of the compensation of the analyst(s) was, is, or will be,directly or indirectly, related to the inclusion of specific recommendations or views in this report. General Disclaimers and DisclosuresThis research report has been prepared by Huatai Financial Holdings (Hong Kong) Limited (hereinafter referred to as “HFHL”). The information herein is strictly confidential to the recipient. This report is intended for HFHL, its clients and associatedcompanies. Any other person shall not be deemed a client of the Company merely from his or her receipt of this report. This report is based on information deemed reliable and publicly available by HFHL, but HFHL and its associated company(ies)(collectively, hereinafter “Huatai”) makes no guarantee as to the accuracy or completeness of such information. The opinions, assessments and projections contained herein only reflect the views and judgments at the issuance date. Huataimay issue research reports that contain inconsistent views, assessments and projections with those set out herein at differenttimes. The prices, values and investment returns of the securities or investment instruments referred to herein may fluctuate.Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.Huatai makes no warrants that the information in this report be kept up to date. The information contained in this report maybemodified without notice by Huatai, andinvestors shall pay attention to such