BANK OF SUZHOU(002966) 华创证券·2025-02-11 04:05Investment Rating - The report maintains a "Recommended" rating for Suzhou Bank, with a target price of 8.46 CNY, compared to the current price of 7.60 CNY [4][8]. Core Insights - Suzhou Bank reported a revenue of 12.223 billion CNY for 2024, reflecting a year-on-year growth of 3.01%, and a net profit attributable to shareholders of 5.068 billion CNY, up 10.15% year-on-year. The non-performing loan ratio decreased by 1 basis point to 0.83%, while the provision coverage ratio increased by 9.8 percentage points to 483.46% [2][8]. - The revenue growth accelerated in Q4 2024 to 9.6%, significantly higher than the less than 2.5% growth in the previous three quarters, supported by a low base effect and strong growth in non-interest income [8]. - The bank's asset quality improved, with a decrease in the non-performing loan ratio and an increase in the provision coverage ratio, indicating a solid safety cushion [8]. Financial Summary - Revenue and Profit Forecasts: - Total revenue (million CNY): 2023: 11,866; 2024E: 12,225; 2025E: 12,629; 2026E: 13,300 [2]. - Net profit (million CNY): 2023: 4,601; 2024E: 5,073; 2025E: 5,624; 2026E: 6,242 [2]. - Growth Rates: - Revenue growth rates: 2024E: 3.02%; 2025E: 3.31%; 2026E: 5.31% [2]. - Net profit growth rates: 2024E: 10.25%; 2025E: 10.87%; 2026E: 10.97% [2]. - Valuation Ratios: - Price-to-earnings (PE) ratio: 2025E: 6.04; Price-to-book (PB) ratio: 2025E: 0.72 [10][11]. Asset Quality - The non-performing loan ratio is projected to remain stable at 0.83% for 2025 and 2026, while the provision coverage ratio is expected to decrease to 430% by 2025 and 394% by 2026 [10][11]. - The bank's capital adequacy ratio is forecasted to decline from 14.03% in 2023 to 11.78% by 2026, indicating a potential tightening of capital [10].