Changshu Bank(601128) 长江证券·2025-04-01 01:44Investment Rating - The report maintains a "Buy" rating for Changshu Bank [9]. Core Views - Changshu Bank focuses on long-termism with a strategic core in micro and small enterprise finance, maintaining a leading growth rate in performance compared to listed banks. The bank is expanding through village and town banks to create a second growth curve, opening up long-term growth potential for asset scale. Short-term macroeconomic fluctuations have impacted credit demand and asset quality indicators, with a recommendation to monitor the pace of macroeconomic recovery and expectations for improvement in retail credit asset quality in 2025. Currently, Changshu Bank's valuation stands at 0.65x 2025 PB, indicating a significant discount compared to historical average valuation levels and other quality regional bank stocks [2][6]. Summary by Sections Financial Performance - In 2024, Changshu Bank reported a revenue growth rate of 10.5% (11.3% in the first three quarters, 8.1% in the fourth quarter), and a net profit growth rate of 16.2% (18.2% in the first three quarters, 9.7% in the fourth quarter). The year-end non-performing loan ratio remained stable at 0.77%, up 2 basis points from the beginning of the year, while the provision coverage ratio decreased by 28 percentage points to 501% [6][9]. Credit and Loan Growth - The total loan amount grew by 8.3% compared to the beginning of the year, marking the first time in recent years that growth fell below 10%. This slowdown is primarily due to insufficient effective demand from micro and small customers in the current macroeconomic environment. Retail loans increased by only 2.2%, with personal operating loans growing by 4.0% and consumer loans by 5.5%. Corporate loans, primarily to micro customers, grew by 16.1%, supporting the overall loan scale [6][11]. Interest Income and Asset Quality - The net interest margin for 2024 decreased by 15 basis points to 2.71%, yet remains significantly higher than the industry average, leading to a 7.5% year-on-year increase in net interest income. Non-interest income surged by 29.1%, driven by favorable bond market conditions. The bank's ability to extract high-yield assets and manage risk pricing remains strong, with personal loan yields only declining by 10 basis points to 6.80% [6][11]. Future Outlook - The report suggests that while short-term macroeconomic fluctuations may impact credit demand and asset quality, Changshu Bank is expected to enhance credit issuance through value extraction from existing customers. The bank's valuation is currently at a significant discount, indicating potential for recovery and growth in the coming years [2][6].