Changshu Bank(601128) 平安证券·2024-08-22 04:03Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expected stock performance that will exceed the market by over 20% within the next six months [3][14]. Core Views - The company has demonstrated strong profit growth, with a year-on-year increase in net profit attributable to shareholders of 19.58% and a revenue growth of 12.03% in the first half of 2024 [5][6]. - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.76%, which is competitive within the industry [8][9]. - The bank's net interest margin (NIM) is reported at 2.79%, reflecting resilience despite slight fluctuations [6][8]. Financial Performance Summary - The company achieved a total revenue of 55.1 billion yuan in the first half of 2024, with a net profit of 17.34 billion yuan [5]. - The annualized return on equity (ROE) stands at 13.28% [5]. - Total assets reached 367.3 billion yuan, marking a 9.82% increase from the beginning of the year, with loans and deposits growing by 7.42% and 14.04% respectively [5][8]. Revenue and Profit Forecast - The forecast for operating income is projected to grow from 88.09 billion yuan in 2024 to 137.75 billion yuan by 2026, with corresponding year-on-year growth rates of 15.1%, 12.1%, and 9.8% [7]. - Net profit attributable to shareholders is expected to rise from 27.56 billion yuan in 2024 to 55.16 billion yuan by 2026, with growth rates of 25.4%, 19.6%, and 18.6% respectively [7]. Asset Quality and Risk Management - The company maintains a robust provision coverage ratio of 539%, ensuring strong risk mitigation capabilities [8][9]. - The report indicates a slight increase in the overdue rate to 1.54%, suggesting a need for ongoing monitoring of retail asset quality [8][9]. Strategic Outlook - The company is focused on expanding its retail and small micro-business segments, leveraging its differentiated development strategy to capture growth opportunities as market demand recovers [9].