杭州银行：资产质量优异，发力科创金融

Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank [12][4][5]. Core Viewpoints - Hangzhou Bank exhibits excellent asset quality, low liability costs, and high income generation, positioning it favorably in the industry [12]. - The bank's asset quality is among the best in its peer group, attributed to a long-term strategy of not compromising on risk for growth [12][68]. - The bank is focusing on innovation-driven financial services, particularly in the technology and creative sectors, which is expected to enhance its growth potential [12][162]. Summary by Sections 1. ROE Breakdown: Strong Fundamentals Compared to Peers - Asset quality is top-tier, consistently maintained at an excellent level [12][68]. - Net interest margin (NIM) is narrowing the gap with industry averages, with corporate loans showing a significant advantage [12][92]. - Non-interest income is bolstered by technology-driven financial services, reinforcing the bank's comprehensive financial service capabilities [12][112]. 2. Short-term: Excellent Asset Quality and Significant Performance Release Potential - The bank's existing asset quality is superior, with the highest excess provisioning in the industry [12][123]. - The bank's risk appetite is low, ensuring a robust buffer against economic fluctuations [12][129]. - Profit growth is sustainable due to the bank's strong asset quality and prudent provisioning policies [12][139]. 3. Mid-term: Stable Management and Focus on Technology Finance - The management team is experienced and stable, ensuring consistent execution of long-term strategies [12][157]. - The bank is actively developing its technology finance sector, with a significant increase in financing for tech enterprises [12][179]. 4. Profit Forecast and Investment Recommendations - The bank is expected to achieve a net profit growth of 17.49% and 14.20% for 2024 and 2025, respectively, with EPS projected at 2.73 and 3.14 CNY per share [12][199]. - The current stock price corresponds to a PE ratio of 5.03X for 2024 and 4.38X for 2025, with a PB ratio of 0.76X and 0.67X, respectively [12][199]. - Given the bank's solid fundamentals and asset quality, a PB valuation of 1X for 2024 is justified, leading to a target price of 17.96 CNY per share [12][199].