Changshu Bank(601128) 国信证券·2025-04-27 04:25Investment Rating - The investment rating for the company is "Outperform the Market" [6][10]. Core Views - The company achieved a revenue of 2.971 billion yuan in Q1 2025, representing a year-on-year growth of 10.0%, and a net profit of 1.083 billion yuan, up 13.8% year-on-year. Non-interest income saw a significant increase of 62.0%, contributing to the overall revenue growth [1][4]. - The net interest margin (NIM) decreased by 22 basis points year-on-year to 2.61%, reflecting industry-wide pressure. The company managed to control deposit costs effectively, with the deposit cost rate declining by 19 basis points to 2.01% [2][4]. - Retail loan demand remains weak, with total loans at 249.6 billion yuan, a growth of 3.6% year-on-year. The company is focusing on quality customer selection, leading to a slowdown in loan growth [3][4]. Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 2.971 billion yuan, a 10.0% increase year-on-year, and a net profit of 1.083 billion yuan, up 13.8% year-on-year. Non-interest income accounted for 22.0% of total revenue, with a significant increase in fees and other non-interest income [1][4]. - The company forecasts net profits of 4.410 billion yuan, 5.209 billion yuan, and 6.168 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 15.7%, 18.1%, and 18.4% [4][5]. Asset Quality - The non-performing loan (NPL) ratio stood at 0.76%, a slight decrease from the beginning of the year. The provision coverage ratio is at 490%, indicating a strong position compared to peers [3][4]. - The company has a total asset of 389 billion yuan, with loans totaling 249.6 billion yuan and deposits at 309 billion yuan, reflecting a year-on-year growth of 6.6%, 3.6%, and 7.9%, respectively [3][4]. Market Position and Outlook - The company maintains a strong competitive position in the small and micro-enterprise lending market, with a comprehensive network in Jiangsu province and plans for further expansion into other regions [4][6]. - Despite the current economic recovery being slow and micro-loan pressures, the long-term investment value of the company is viewed positively, with a projected price-to-book (PB) ratio of 0.68x for 2025 [4][5].