HZBank(600926) 长江证券·2025-01-27 03:09Investment Rating - The investment rating for Hangzhou Bank is "Buy" and is maintained [6]. Core Views - The report highlights that New China Life Insurance has acquired 330 million shares of Hangzhou Bank from Commonwealth Bank of Australia, representing 5.45% of the total shares. After the transfer, New China Life and its concerted parties will hold 5.87% of Hangzhou Bank's shares, while Commonwealth Bank will no longer hold any shares [2][4]. - The acquisition is seen as a strategic move in the context of asset scarcity, with high-quality bank equities becoming rare assets amid current market pressures. There is a notable increase in interest from insurance and industrial capital in bank equity investments [2][4]. - Hangzhou Bank has a strong operational philosophy of "not trading risk for growth," and the partnership with New China Life is expected to foster collaboration in wealth management and retail sectors, leading to mutual benefits [2][4]. Summary by Sections Event Description - The report details the share transfer of 330 million shares from Commonwealth Bank to New China Life for a total consideration of 4.317 billion yuan, marking a significant shift in ownership [4]. Financial Performance - Hangzhou Bank has consistently demonstrated high profit growth, leading the listed banks in performance metrics. The bank's loan growth for the first three quarters of 2024 is projected at 12.8%, with an expected annual growth rate of around 13% [8]. - The bank's net interest margin has stabilized, and its asset quality remains robust, with a non-performing loan ratio of 0.76% as of September 2024 and a provision coverage ratio of 543% [8][11]. Investment Outlook - The report anticipates that New China Life will gain a board seat post-acquisition, allowing it to share in Hangzhou Bank's return on equity (ROE) under the equity method of accounting. The long-term trend indicates increasing interest from insurance funds in bank equity investments, driven by low valuations and stable growth prospects [8]. - The projected revenue growth rates for 2024 and 2025 are 4.0% and 4.7%, respectively, with net profit growth rates of 17.5% and 14.2% [8]. The current stock price corresponds to a valuation of only 0.70 times the 2025 price-to-book ratio, indicating significant upside potential [8].