HZBank(600926) 太平洋·2024-11-11 02:13Investment Rating - The investment rating for Hangzhou Bank is "Buy" with a target price based on the closing price of 14.08 [1][3]. Core Insights - Hangzhou Bank's Q3 2024 report shows a revenue of 28.494 billion yuan, a year-on-year increase of 3.87%, and a net profit attributable to shareholders of 13.870 billion yuan, up 18.63% year-on-year. The weighted average ROE (unannualized) stands at 13.51%, an increase of 0.39 percentage points year-on-year [3]. - The bank's asset quality remains excellent, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 543.25% as of the end of Q3 2024 [3]. - The bank's total assets exceeded 2 trillion yuan, growing by 9.58% year-on-year, while total loans increased by 12.77% to 0.91 trillion yuan [3]. - The net interest margin has stabilized, with a reported net interest margin of 1.46%, up 2 basis points quarter-on-quarter, supported by a decline in funding costs [3]. Summary by Sections Financial Performance - Revenue for Q3 2024 reached 28.494 billion yuan, with a year-on-year growth of 3.87%. The net interest income was 18.273 billion yuan, reflecting a growth of 3.87%, while non-interest income decreased by 8.07% to 2.928 billion yuan [3]. - The bank's total assets surpassed 2 trillion yuan, marking a 9.58% increase from the previous year, with total loans at 0.91 trillion yuan, a 12.77% increase [3]. Asset Quality - The non-performing loan ratio is stable at 0.76%, with a provision coverage ratio of 543.25%, indicating a strong buffer against potential loan losses [3]. - The bank's attention to asset quality is reflected in the low levels of non-performing and attention loans, maintaining a solid risk mitigation capacity [3]. Future Outlook - The bank is expected to maintain high growth rates in assets due to its regional advantages and strong client financing demand. Revenue projections for 2024-2026 are 36.823 billion, 39.132 billion, and 42.014 billion yuan, respectively, with net profits expected to reach 16.906 billion, 19.923 billion, and 22.969 billion yuan [4]. - The projected PB ratios for the next three years are 0.61, 0.52, and 0.45, indicating that the stock is undervalued relative to its book value [4].