BANK OF SUZHOU(002966) 长江证券·2025-02-12 01:49Investment Rating - The investment rating for Suzhou Bank is "Buy" and is maintained [5]. Core Views - Suzhou Bank's revenue growth accelerated in the fourth quarter, with a full-year revenue growth rate of 3.0%, up from 1.1% in the first three quarters, and a notable 9.6% growth in the fourth quarter alone. The net profit attributable to shareholders increased by 10.2% year-on-year, with a fourth-quarter growth of 6.0% [3][8]. - The asset quality remains strong, with a year-end non-performing loan (NPL) ratio decreasing by 1 basis point to 0.83%, and the provision coverage ratio increasing by 10 percentage points to 483% [3][8]. - The first major shareholder, Suzhou Guofa Group, has been increasing its stake, having accumulated 104 million shares since September 2024, raising its holding by 2.18 percentage points to 14%. This reflects the support from the Suzhou municipal government for the long-term value of Suzhou Bank [3][8]. Summary by Sections Revenue and Profitability - The full-year revenue growth was 3.0%, with a quarterly growth of 9.6% in Q4. The net profit attributable to shareholders grew by 10.2% year-on-year, with Q4 showing a 6.0% increase [3][8]. Asset Quality - The year-end NPL ratio was 0.83%, down 1 basis point, while the provision coverage ratio rose to 483%, indicating strong asset quality management [3][8]. Shareholder Activity - Suzhou Guofa Group has increased its stake in Suzhou Bank, reflecting confidence from the local government. The group plans to continue its share purchases, which is expected to support the bank's long-term growth [3][8]. Valuation - The current valuation stands at 0.64 times the 2025 price-to-book ratio (PB), with a projected dividend yield of 5.2% for 2025 [3][8].