Changshu Bank(601128) 国信证券·2024-10-25 02:30Investment Rating - The investment rating for the company is "Outperform the Market" [3][6] Core Views - The company has maintained good growth in performance, with revenue of 8.37 billion and net profit of 2.98 billion for the first three quarters of 2024, representing year-on-year growth of 11.3% and 18.2% respectively [1] - Microloan demand is currently weak, but the company is expected to benefit from the recovery in microloans as steady growth policies are implemented and the economy improves [1] - The net interest margin has slightly narrowed to 2.75%, down 21 basis points year-on-year, primarily due to a decline in loan yields [1] - The non-performing loan ratio remains low at 0.77%, with a slight increase from the previous quarter, while the proportion of special mention loans has risen [1] - The company is expected to see a turning point in its microloan business as steady growth policies continue to take effect, with projected net profits of 3.9 billion, 4.6 billion, and 5.6 billion for 2024-2026, corresponding to year-on-year growth rates of 19.0%, 17.5%, and 22.1% [1][4] Financial Forecasts and Valuation - Revenue is projected to reach 10.95 billion in 2024, with a year-on-year growth of 10.9% [2][4] - Net profit is expected to be 3.9 billion in 2024, with a year-on-year growth of 19.0% [2][4] - The price-to-earnings (PE) ratio is projected to be 5.5x for 2024, 4.7x for 2025, and 3.9x for 2026, while the price-to-book (PB) ratio is expected to be 0.75x, 0.66x, and 0.58x respectively [1][4]