Gelonghui, April 12 | According to Guotai Junan Research Report, Minsheng Bank (1988.HK)'s revenue and net profit growth rate in 2023 showed a recovery trend. The size of small and micro loans increased further and the non-performing rate declined, deposit costs improved marginally, and asset quality was stable, moderate and positive. The target price of HK$3.96 was maintained, corresponding to 0.29 times PB in 2024, maintaining the “increase in holdings” rating. Revenue in 2023 fell 1.2% year on year. The decline was 14.4 percentage points narrower than in 2022 and 0.9 percentage points narrower than the previous three quarters. Other non-interest income increased 29.9% year over year, and the Q4 single quarter surged 159.6% year on year, which was the main supporting factor for revenue. Net profit increased 1.6% year over year, and profitability was generally stable. Looking ahead, considering factors such as repricing, the return on assets may continue to decline, while the cost of debt is relatively rigid, and Minsheng Bank's interest spreads are still under pressure.