Changshu Bank(601128) 东方证券·2025-04-23 05:04Investment Rating - The report gives a "Buy" rating for the company, with a target price of 8.82 CNY per share based on a 20% valuation premium over the average PB of comparable companies [4][7]. Core Viewpoints - The company is positioned as a leading small and micro enterprise bank, with a strong focus on local economic development and a well-established business model that has evolved through three iterations [11][38]. - The bank's asset quality is expected to remain stable, with credit costs projected to stay at controllable levels due to effective risk management and supportive policies for small and micro enterprises [3][53]. - The bank's return on equity (ROE) is anticipated to maintain a leading position in the industry, supported by robust fundamentals and a favorable growth outlook [11][4]. Summary by Sections Company Overview - Jiangsu Changshu Rural Commercial Bank, established in 2001, has a total asset scale of 366.6 billion CNY as of the end of 2024, showing a year-on-year growth of 9.6% [26][30]. - The bank has a diversified ownership structure, with the largest shareholder being Bank of Communications, holding 9.01% of shares [35][36]. Business Model and Strategy - The bank has developed a unique "Changshu Microfinance Model" through the introduction of IPC technology for credit assessment and the establishment of a "credit factory" model to enhance lending efficiency [44][45]. - The bank's personal operating loans accounted for approximately 40% of total loans as of mid-2024, leading the industry by over 10 percentage points [40][43]. Financial Performance - The bank's projected net profit growth rates for 2025, 2026, and 2027 are 12.8%, 11.2%, and 13.1%, respectively, with corresponding BVPS of 10.52, 11.92, and 13.51 CNY [4][6]. - The bank's net interest margin is expected to remain favorable due to a strategy of focusing on small, scattered, and credit-based lending, combined with the maturity of high-interest deposits [3][4]. Market Position and Expansion - The bank has a strong presence in the local market and is actively expanding its footprint through the establishment of branches and the acquisition of village banks, enhancing its revenue contribution from these areas [30][32]. - The bank's revenue from non-local branches and village banks has increased significantly, indicating a successful diversification strategy [32][33].