BANK OF CHANGSHA(601577) 光大证券·2025-04-27 12:13Investment Rating - The report maintains a "Buy" rating for Changsha Bank (601577.SH) with a current price of 9.39 CNY [1]. Core Views - Changsha Bank achieved an operating income of 25.936 billion CNY in 2024, a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 7.827 billion CNY, up 4.9% year-on-year [4]. - The bank's loan growth remains robust, with a year-on-year increase of 12.6% in loans as of the end of Q1 2025, indicating strong credit demand [6]. - Non-interest income grew by 10% in Q1 2025, contributing 25% to total revenue, reflecting an improvement in the bank's revenue diversification [9]. Summary by Sections Financial Performance - In 2024, Changsha Bank's operating income was 25.936 billion CNY, with a net profit of 7.827 billion CNY, and a return on equity (ROE) of 12.31% [4][28]. - For Q1 2025, the bank reported an operating income of 6.8 billion CNY and a net profit of 2.2 billion CNY, both showing a growth of 3.8% year-on-year [4]. Loan and Asset Growth - As of Q1 2025, the bank's interest-earning assets and loans grew by 11.3% and 12.6% year-on-year, respectively, with a significant increase in loan issuance [6]. - The total new loans for 2024 were 56.7 billion CNY, with Q1 2025 alone contributing 42.8 billion CNY, indicating a strong start to the year [6]. Non-Interest Income - Non-interest income for Q1 2025 reached 1.7 billion CNY, up 10% year-on-year, with net fees and commissions contributing significantly to this growth [9]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.17% at the end of 2024, with a coverage ratio of 312.8%, indicating strong risk management [10][24]. - The bank's credit impairment losses for Q1 2025 were 2.5 billion CNY, reflecting a year-on-year increase, but the overall asset quality remains solid [10]. Capital Adequacy - As of Q1 2025, the core tier 1 capital adequacy ratio was 9.7%, indicating a strong capital position despite the expansion of risk-weighted assets [10][27]. Valuation and Forecast - The report adjusts the EPS forecast for 2025 to 2.02 CNY, with corresponding price-to-earnings (P/E) ratios of 4.64 for 2025, maintaining a "Buy" rating based on the bank's growth potential and asset quality [11][12].