县域金融和零售金融成效明显，业绩保持较好增长

Investment Rating - The report assigns an "Accumulate" rating for Changsha Bank (601577.SH) as the initial coverage [4]. Core Views - The bank has shown significant growth in county and retail finance, with total assets reaching 1.06 trillion yuan by the end of March 2024. The county finance strategy has been established as the bank's primary development initiative, given that 71% of Hunan's population resides in counties [1][9]. - The bank's net interest margin is well-managed, with a slight narrowing to 2.31% in 2023, while maintaining a stable loan growth rate. The bank's non-performing loan ratio remained stable at 1.15% as of March 2024, with a high provision coverage ratio of 314% [1][18]. Summary by Sections Financial Performance - In 2023, the bank achieved a revenue of 24.8 billion yuan, a year-on-year increase of 8.5%, and a net profit of 7.5 billion yuan, up 9.6% year-on-year. For Q1 2024, revenue was 6.6 billion yuan, reflecting a 7.9% increase year-on-year, with a net profit of 2.1 billion yuan, up 5.8% year-on-year [1][18]. - The bank's total assets grew by 12.7% year-on-year by the end of 2023 and by 11.2% year-on-year by the end of March 2024 [1]. Loan and Deposit Growth - By the end of 2023, total loans increased by 14.6% year-on-year, with corporate loans growing by 20.5% and personal loans increasing by 7.4%. The bank's deposit balance reached 676.4 billion yuan, with a significant portion coming from county finance [1][12]. - The bank's retail loans accounted for 37.84% of total loans, with personal consumption loans growing significantly by 21.6% [1][15]. Non-Interest Income - Non-interest income saw a substantial increase of 22.9% year-on-year in Q1 2024, driven by a 60% rise in other non-interest income, despite a 25% decline in net commission income [1][18]. Wealth Management and Retail Strategy - The bank has made significant strides in retail financial transformation, with retail customer numbers reaching 17.7 million by the end of 2023. Wealth management has also been a focus, with assets under management reaching 400.2 billion yuan and a 150.81% increase in wealth management fee income [1][16]. Valuation and Price Target - The report estimates the reasonable stock price for Changsha Bank in 2024 to be between 10.1 and 11.7 yuan, corresponding to a price-to-book ratio of 0.61 to 0.70x, indicating a potential upside of approximately 24% to 43% from the current price of 8.16 yuan [29].