Broker morning meeting highlights | With the optimization of deposit costs in 2025, the narrowing of the interest margin in the banking industry is expected to be reduced.

The market rose yesterday before falling back, with the three major indexes rising slightly. The total turnover of the Shanghai and Shenzhen stock markets was 974.5 billion yuan for the whole day, a decrease of 157.8 billion yuan from the previous trading day, marking the second lowest turnover of the year. In terms of sectors, the sectors of electric machinery, Siasun Robot & Automation, tobacco, and diversified finance led the gains, while precious metals, controllable nuclear fusion, oil and gas, and power sectors led the declines. As of the close yesterday, the Shanghai Composite Index rose by 0.05%, the Shenzhen Component Index rose by 0.09%, and the ChiNext Index rose by 0.13%. At today's securities morning meeting, Sinolink pointed out to pay attention to Yushu's new release of dexterous hand supply chain; China Securities Co., Ltd. believes that under the optimization of deposit costs by 2025, the narrowing of interest rate differentials in the banking industry is expected. Sinolink: Focus on Yushu's new release of dexterous hand supply chain Sinolink stated that the current focus on supply chain giants represented by T is still the core investment theme. Considering the event catalyzed by the dexterous hand released in March-April, the key focuses are: (1) the marginal changes of the dexterous hand, namely micro-threaded rods and tactile sensors; (2) focus on Yushu's new release of the dexterous hand supply chain, and keep an eye on the progress of Huawei chain focusing on Siasun Robot & Automation; (3) focus on the valuation reshaping of leading companies in undervalued segmented tracks: in the long term, leading companies in segmented tracks still have the highest win rate. China Securities Co., Ltd.: Interest rate differential reduction is expected to narrow under deposit cost optimization by 2025 China Securities Co., Ltd. analyzed the 2024 financial reports of the banking industry, indicating that high growth in other non-interest income + narrowing of interest rate differentials led to a reduction in revenue decline among listed banks in 2024. With less provisioning released to boost profits, the performance growth continued to improve. However, industry risks such as retail and micro-enterprises need to be continuously monitored. Looking ahead to 2025, stable growth in scale is expected; interest rate differential reduction is expected to narrow under deposit cost optimization; marginal improvement in net income performance. Other non-interest income is the biggest variable, which may somewhat negatively impact revenue. With stable asset quality, profits can continue to grow positively. In terms of the banking sector allocation, as the bottom of the actual operation and expected bottom of the banking sector further solidify, the core demand lies in the configuration type with a bottom-line mindset, high confidence, and high win rate, with the safety margin further enhanced. Before the economic expectations show an upward turning point, it is difficult to switch fully to pro-cyclical varieties within the sector. It is still favorable to high dividend strategies, focusing on targets with limited risks of dilution of refinancing, high dividends, and solid fundamentals. This article is reproduced from "Caishen", GMTEight editor: Huang Xiaodong