Bank Of Chongqing(601963) 华创证券·2025-04-26 14:45Investment Rating - The report maintains a "Recommendation" rating for Chongqing Bank, with a target price of 12.09 CNY / 8.09 HKD, compared to the current price of 10.26 CNY / 7.09 HKD [4]. Core Views - The bank's revenue and net profit both increased by 5.3% year-on-year in Q1 2025, with total revenue reaching 3.581 billion CNY [2][7]. - The non-performing loan (NPL) ratio decreased by 4 basis points to 1.21%, while the provision coverage ratio increased by 2.5 percentage points to 247.6% [2][7]. - The bank's asset quality continues to improve, with a significant increase in net interest income by 28% due to accelerated scale expansion and diminishing interest margin drag [7]. - Retail loans showed continued improvement, with new retail loans of 1.847 billion CNY in Q1 2025, a year-on-year increase of 5.2% [7]. - The bank's annualized interest margin increased by 37 basis points quarter-on-quarter to 1.52%, driven by a recovery in asset yield and a reduction in liability costs [7]. Summary by Sections Financial Performance - In Q1 2025, Chongqing Bank achieved a total revenue of 3.581 billion CNY, reflecting a year-on-year growth of 5.3% and a quarter-on-quarter improvement of 2.6 percentage points [7]. - The net profit attributable to shareholders was 1.624 billion CNY, also up 5.3% year-on-year [7]. - The bank's total assets reached 957.148 billion CNY in 2025E, with a projected revenue growth of 5.2% for 2025 [8]. Asset Quality - The NPL ratio improved to 1.21%, with a net NPL generation rate decreasing to 0.25% [7]. - The provision coverage ratio rose to 247.6%, indicating a strong buffer against potential loan losses [7]. Loan Growth - The bank's total loan balance is projected to reach 490.890 billion CNY in 2025E, with a year-on-year growth rate of 12.00% [9]. - Corporate loans saw a significant increase, with new corporate loans amounting to 41.403 billion CNY in Q1 2025, a year-on-year growth of 30.8% [7]. Market Position - Chongqing Bank is positioned to benefit from regional strategic opportunities, with a focus on project loans in the Chongqing area supported by national and local industrial strategies [7]. - The bank's current price corresponds to a 2025E price-to-book (PB) ratio of 0.64X, with a target PB of 0.75X based on its growth potential [7].