According to the Guangfa Securities Research Report, the year-on-year growth rates of China Merchants Bank's 26Q1-3 revenue, PPOP, and net profit to mother were 5.34%, 6.37%, and 2.38%, respectively. The growth rates of +0.51pct, +0.74pct, and +0.36pct compared to 26H1, respectively. The growth rates of revenue, PPOP, and net profit to mother showed a positive trend from quarter to quarter. Interest spreads stabilized month-on-month in a single quarter. According to the company's three-quarter report, the Q3 quarterly net interest spread was 1.75% and the net interest spread was 1.82%, all unchanged from the second quarter. Among them, the return on interest-bearing assets in Q3 was 2.77%, down 2 bps from Q2. The return on loan/financial investment was 3.09%/2.61%, down 1 bp/3 bp from month to month; the interest-bearing debt cost ratio was 1.02%, down 2 bps month-on-month; the deposit cost ratio was 0.93%, down 2 bps month-on-month. Taking into account the company's historical PB valuation center and fundamentals, the company was given 1.20 times PB of net assets per share in the latest financial report, corresponding to a reasonable value of 56.24 yuan/share. According to the current AH premium ratio, H shares had a reasonable value of HK$71.27 per share, all maintaining a “buy” rating.

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