Changshu Bank(601128) 平安证券·2025-03-28 05:43Investment Rating - The report maintains a "Strong Buy" rating for Changshu Bank (601128.SH), expecting the stock to outperform the market by over 20% in the next six months [12]. Core Views - Changshu Bank demonstrated resilience in its revenue and maintained excellent asset quality, with a 10.5% year-on-year increase in operating income and a 16.2% increase in net profit attributable to shareholders for the year 2024 [4][7]. - The bank's net interest margin for 2024 was reported at 2.71%, showing strong performance compared to peers, despite a slight decline [7]. - The bank's asset quality remains robust, with a non-performing loan (NPL) ratio of 0.77% and a provision coverage ratio of 501% as of the end of 2024 [8][10]. Summary by Sections Financial Performance - For the year 2024, Changshu Bank achieved operating income of 10.9 billion yuan, a 10.5% increase year-on-year, and a net profit of 3.81 billion yuan, reflecting a 16.2% growth [4][6]. - The annualized return on equity (ROE) was reported at 14.15% [4]. Asset Quality - The bank's NPL ratio remained stable at 0.77%, with a year-on-year NPL generation rate of 1.37% [8][10]. - The provision coverage ratio decreased to 501%, but the absolute level remains high, indicating strong risk mitigation capabilities [8][10]. Revenue and Profitability - The net interest income for 2024 grew by 7.5%, with significant contributions from small and micro enterprises [7]. - Non-interest income saw a substantial increase of 29.1%, driven by growth in bond investment-related income [7]. Future Projections - The report projects EPS for 2025-2027 to be 1.46, 1.68, and 1.91 yuan respectively, with corresponding profit growth rates of 15.3%, 15.0%, and 13.7% [7][10]. - The bank's total assets are expected to grow at a rate of 9.6% in 2024, with total loans projected to increase by 8.3% [10].