Changshu Bank(601128) 光大证券·2024-10-25 00:38Investment Rating - The report maintains a "Buy" rating for Changshu Bank with a current price of 7.17 CNY [1]. Core Insights - Changshu Bank reported a revenue of 8.37 billion CNY for the first three quarters of 2024, representing a year-on-year growth of 11.3%, while the net profit attributable to shareholders reached 2.98 billion CNY, up 18.2% year-on-year [1]. - The bank's net interest income and non-interest income grew by 44.2%, indicating strong resilience in revenue generation despite a slight decline in growth rates compared to the first half of 2024 [1][3]. - The bank's asset structure continues to optimize, with total assets, interest-earning assets, and loans growing by 10.4%, 11.6%, and 9.7% year-on-year, respectively [1][3]. Revenue Performance - For the first three quarters of 2024, Changshu Bank's revenue, pre-provision profit, and net profit grew by 11.3%, 18.5%, and 18.2% year-on-year, respectively, showing a decline in growth rates compared to the first half of 2024 [1]. - The bank's non-interest income for the first three quarters was 1.47 billion CNY, up 44% year-on-year, contributing to 17.5% of total revenue [3]. Asset Quality and Capital Adequacy - As of the end of the third quarter, the non-performing loan ratio and attention ratio were 0.77% and 1.52%, respectively, indicating a slight increase from the previous quarter [3]. - The bank's capital adequacy ratios improved, with the core Tier 1 capital ratio at 10.6%, and the total capital adequacy ratio at 14% [3]. Earnings Forecast and Valuation - The report forecasts earnings per share (EPS) for 2024, 2025, and 2026 to be 1.29 CNY, 1.49 CNY, and 1.68 CNY, respectively, with corresponding price-to-book (PB) ratios of 0.74, 0.66, and 0.58 [4][5]. - The bank's net interest margin (NIM) is projected to be 2.75% for the first three quarters of 2024, reflecting a slight contraction due to market conditions [1][3].