Core Viewpoint - Hangzhou Bank successfully completed a convertible bond issuance of 15 billion yuan, emphasizing its commitment to investor returns and adherence to new national policies aimed at enhancing capital market construction [1][1][1] Group 1: Financial Performance - The total share capital of Hangzhou Bank has increased to 7.25 billion shares following the convertible bond issuance [1] - The bank plans to implement cash dividends twice a year, starting from the 2025 fiscal year, to ensure equitable returns for both new and existing shareholders [1][1] Group 2: Investor Relations - The bank is focused on providing predictable and attractive dividend returns to investors, aligning with the principles of shared benefits for all shareholders [1][1] - Hangzhou Bank is actively responding to the new national policies, such as the "New National Nine Articles," to enhance investor-centric practices in the capital market [1]

Core Insights - The report highlights the updated monthly interest rate timing model, which shows improved predictive accuracy with a success rate of 74% for the recent two years [12][14] - The company Atour (ATAT.O) has raised its full-year retail revenue guidance, with Q2 revenue growing by 37.4% year-on-year to 2.47 billion yuan, exceeding expectations [15][17] - Shenzhen International (00152.HK) reported a revenue of 6.67 billion yuan, a year-on-year increase of 0.9%, with a focus on logistics park transformation projects [18][16] Group 1: Interest Rate Timing Strategy - The updated model incorporates richer factor indicators and adjusts weightings for different types of indicators, enhancing predictive capabilities [14] - Three strategy applications have been designed: basic timing strategy, timing & treasury futures strategy, and timing & leverage strategy, all outperforming longer-duration benchmarks [14] - The timing & leverage strategy achieved a maximum annualized excess return of 128 basis points [14] Group 2: Atour (ATAT.O) Performance - Atour's Q2 performance exceeded expectations, with a net profit increase of 39.8% year-on-year to 425 million yuan [15][17] - The company opened 118 new hotels in Q2, maintaining its target of 500 new openings for the year [15][17] - Retail business GMV reached 1.144 billion yuan in Q2, a year-on-year growth of 84.6%, with online sales accounting for over 90% [15][17] Group 3: Shenzhen International (00152.HK) Insights - The company’s logistics park transformation and asset securitization strategies are expected to enhance earnings resilience [18][16] - For 2025-2027, net profit forecasts are 3.081 billion, 3.430 billion, and 3.925 billion HKD, with a dividend yield projected at 8.3%, 9.3%, and 10.6% respectively [18][16] - The logistics park business reported a revenue of 785 million HKD in H1 2025, a year-on-year increase of 5.4% [18][16] Group 4: Steel Industry Performance - Baosteel (600019) reported steady growth with high dividend maintenance, while Hualing Steel (000932) saw a significant increase in high-end product sales [20][24] - The steel industry is experiencing a shift towards high-end products, with companies like Zhongxin Special Steel (000708) maintaining stable performance [26] - The overall steel market is expected to benefit from reduced raw material costs and improved product structures, leading to enhanced profitability [24][26]

Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank [1] Core Views - Hangzhou Bank's performance in the first half of 2025 shows revenue of 20.09 billion yuan, a year-on-year increase of 3.9%, and a net profit attributable to shareholders of 11.66 billion yuan, up 16.7% year-on-year [4][5] - The bank's high provisioning and return on equity (ROE) of 19% are key factors supporting sustainable performance and market valuation [7][10] - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.76% and a provisioning coverage ratio of over 500% [10][12] Financial Performance Summary - Revenue and net profit growth: 1H25 revenue increased by 3.9% and net profit by 16.7% compared to the previous year [5][8] - Provisioning impact: Credit impairment losses decreased by 44% year-on-year, contributing positively to net profit growth [5][9] - Interest income: Net interest income for 1H25 was 13.09 billion yuan, reflecting a 12% increase year-on-year [15] Asset Quality and Loan Performance - NPL ratio: The NPL ratio remained stable at 0.76% in 2Q25, with a provisioning coverage ratio of 521% [10][15] - Loan growth: Total loans reached 1,009.42 billion yuan in 2Q25, a 12% increase year-on-year [15] - Sector focus: New loans in 1H25 were primarily directed towards infrastructure and manufacturing sectors, with retail loans showing a decline [12][11] Profitability Metrics - ROE: The annualized ROE for 1H25 was 19%, indicating strong profitability [7][10] - Earnings per share (EPS): The EPS for 2025 is projected at 2.60 yuan, with a corresponding price-to-earnings (P/E) ratio of 6.10 [6][10] Market Position and Valuation - Market capitalization: The circulating A-share market value is approximately 114.97 billion yuan [1] - Price-to-book (P/B) ratio: The current stock price corresponds to a P/B ratio of 0.82, indicating potential undervaluation [10][11]

Core Viewpoint - Hangzhou Bank reported a solid performance in the first half of 2025, with a year-on-year increase in operating income and net profit, indicating resilience in its business fundamentals [1][2][8]. Financial Performance - The bank achieved operating income of 20.09 billion, up 3.9% year-on-year, and net profit attributable to shareholders of 11.66 billion, up 16.7% year-on-year [1][2]. - The annualized weighted average return on equity was 19%, a decrease of 0.48 percentage points year-on-year [1]. Revenue Composition - Net interest income grew by 9.4% year-on-year, with a 2.5 percentage point increase compared to Q1 [2]. - Non-interest income decreased by 5% year-on-year, but the decline was less severe than in Q1 [5]. Loan and Deposit Structure - The loan-to-asset ratio slightly increased to 45.2%, with total loans growing by 12% year-on-year [2][3]. - New loans in Q2 were primarily driven by corporate loans, while retail loans saw a slight decline [3]. Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76%, with a corporate loan NPL ratio of 0.65% [6]. - The bank's provision coverage ratio was 520.9%, maintaining a strong risk mitigation capacity [7]. Capital Adequacy - The bank's capital adequacy ratios improved significantly, with the core Tier 1 capital ratio reaching 9.74% [7]. - The conversion of convertible bonds has strengthened the bank's capital base, alleviating refinancing pressures [8]. Future Outlook - The bank's EPS forecasts for 2025-2027 are 2.72, 3.18, and 3.71 respectively, with current PB valuations of 0.91, 0.80, and 0.69 times [8].

Investment Rating - The report maintains a "Recommended" rating for Hangzhou Bank (stock code: 600926) [1] Core Insights - Hangzhou Bank's revenue growth is on the rise, with a 3.9% year-on-year increase in H1 2025, and a net profit growth of 16.66% year-on-year. The annualized weighted average ROE stands at 19%, slightly down by 0.48 percentage points [4] - The bank has optimized its liability costs, resulting in a net interest income increase of 9.38% year-on-year in H1 2025, with a net interest margin of 1.35%, down 6 basis points from the beginning of the year [4] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% as of June 2025, and a provision coverage ratio of 520.89%, which is leading in the industry [4] - The completion of the conversion of convertible bonds further strengthens the bank's capital base, enhancing its operational expansion and risk resistance capabilities [4] Financial Performance Summary - In H1 2025, the bank's revenue reached approximately 35,015.54 million yuan, with a projected growth rate of 6.33% for 2023 [43] - The net profit attributable to shareholders is expected to grow to 14,383.37 million yuan in 2023, reflecting a growth rate of 23.15% [43] - The bank's core tier 1 capital adequacy ratio is reported at 9.74% as of June 2025, indicating a robust capital position [4] Loan and Deposit Growth - Total loans increased by 7.67% year-to-date, with corporate loans growing by 12.41% and retail loans slightly declining by 2.12% [4] - Deposits rose by 5.17% year-to-date, with personal deposits increasing by 10.68% [4] Non-Interest Income and Investment Performance - Non-interest income decreased by 5% year-on-year in H1 2025, while investment income grew by 23.85% year-on-year [4] - The bank's wealth management products have expanded significantly, with a total scale exceeding 500 billion yuan, up 17% from the beginning of the year [4]

Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The report highlights excellent performance growth and solid capital levels for the company, with a focus on narrowing interest margin declines, recovering non-interest income growth, and robust capital adequacy [6][7][9] - The target price is set at RMB 19.01, with the current closing price at RMB 15.86, indicating a potential upside [2] Financial Performance Summary - For the first half of 2025, the company's net profit attributable to shareholders increased by 16.7% year-on-year, while operating revenue grew by 3.9% [6] - The annualized ROE and ROA for the same period were 19.00% and 1.07%, respectively [6] - Total assets, loans, and deposits grew by 12.6%, 12.0%, and 16.2% year-on-year, respectively [6] - The net interest margin for the first half of 2025 was 1.35%, with net interest income increasing by 9.4% year-on-year [6][7] Revenue and Profit Forecast - Revenue projections for the upcoming years are as follows: - 2024: RMB 38,381 million (growth of 9.61%) - 2025E: RMB 39,610 million (growth of 3.20%) - 2026E: RMB 42,656 million (growth of 7.69%) - 2027E: RMB 46,242 million (growth of 8.41%) [5] - Net profit forecasts are: - 2024: RMB 16,983 million (growth of 18.07%) - 2025E: RMB 19,700 million (growth of 16.00%) - 2026E: RMB 22,994 million (growth of 16.72%) - 2027E: RMB 26,861 million (growth of 16.81%) [5] Asset Quality and Capital Adequacy - The non-performing loan (NPL) ratio stood at 0.76% with a provision coverage ratio of 521%, indicating strong asset quality [8] - The core Tier 1 capital adequacy ratio improved to 9.74% as of the end of the second quarter of 2025 [7][9] Valuation Metrics - The report assigns a target price-to-book (PB) ratio of 1.00x for 2025, with a corresponding target price of RMB 19.01 [9] - The company's estimated PB for 2025 is 0.83x, compared to the average PB of comparable companies at 0.73x [9]

公司披露的上半年净息差 1.35%，同比收窄 7bps，较 2024 年下降 6bps。资 产端收益率降幅较大，上半年贷款收益率 3.77%，同比下降 58bps，主要受 受 LPR 下降、存量贷款到期重定价以及政府债务置换等因素冲击；负债端， 受益于存款挂牌利率调降，上半年存款利率同比下降 28bps 至 1.80%。 其他非息收入延续下降态势拖累营收，但降幅收窄。上半年非息收入同比收 窄 5.0%，占营收比重为 34.9%。其中，手续费净收入同比增长 10.8%，其他 非息收入同比下降 11.3%，主要是由于交易性金融资产公允价值变动亏损， 不过二季度单季其他非息收入降幅已收窄至 5.2%。 资产质量优质，拨备覆盖率下降但依然处在同业前列。期末不良率 0.76%， 较 3 月持平。其中，对公不良率 0.65%，较年初下降 10bps；个人贷款不良 率 1.02%，较年初提升 25bps，零售信贷资产质量依然承压。公司加大处置 力度，上半年公司核销处置 25.3 亿元，同比提升了 42.9%，加回核销处置后 的不良贷款生成率 0.66%，同比提升 4bps，依然在低位。期末关注率 0.51%， 较 3 月末 ...

Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank (600926.SH) [1] Core Views - Hangzhou Bank's revenue improved quarter-on-quarter, with a year-on-year revenue increase of 3.9% to 20.09 billion, and a net profit attributable to shareholders of 11.66 billion, up 16.7% year-on-year [3][4] - The bank's annualized weighted average return on equity (ROE) stands at 19%, a slight decrease of 0.48 percentage points year-on-year [3] Revenue and Profitability - The bank's revenue, pre-provision operating profit (PPOP), and net profit attributable to shareholders for the first half of 2025 grew by 3.9%, 4.7%, and 16.7% year-on-year, respectively [4] - Net interest income increased by 9.4% year-on-year, while non-interest income decreased by 5%, with the decline narrowing compared to the first quarter [4][8] Asset and Loan Growth - As of the end of the second quarter, the bank's interest-earning assets and loans grew by 12.7% and 12% year-on-year, respectively [5] - The proportion of loans in interest-earning assets slightly increased to 45.2% [5] Deposit and Funding Structure - The growth rate of interest-bearing liabilities and deposits was 12.4% and 16.2% year-on-year, respectively, both showing a decline compared to the first quarter [6] - Retail deposits increased, while corporate deposits decreased, indicating competitive pressures in the market [6] Interest Margin and Cost Management - The net interest margin narrowed by 6 basis points to 1.35% compared to the beginning of the year [7] - The bank has been actively managing costs, with a decrease in the cost of interest-bearing liabilities by 26 basis points to 1.87% [7] Asset Quality - The non-performing loan (NPL) ratio remained stable at 0.76%, with a strong provision coverage ratio of 520.9%, leading the industry [9][10] Capital Adequacy - The bank's capital adequacy ratios improved significantly, with the core Tier 1 capital ratio reaching 9.74% as of the end of the second quarter [10][32] Earnings Forecast and Valuation - The report forecasts earnings per share (EPS) for 2025-2027 at 2.72, 3.18, and 3.71 yuan, respectively, with corresponding price-to-book (PB) ratios of 0.91, 0.80, and 0.69 [11][12]

Group 1 - The core point of the article is the financial performance of Hangzhou Bank as disclosed in its mid-term performance report [1] - As of the end of the reporting period, Hangzhou Bank's wealth management assets totaled 5.688 billion yuan [1] - The net assets of Hangzhou Bank were reported at 5.387 billion yuan [1] - The operating income for the reporting period was 726 million yuan, with a net profit of 483 million yuan [1]

Core Viewpoint - The company has demonstrated continuous improvement in operational efficiency, as evidenced by its financial performance in the mid-2025 report [1] Financial Performance - The company achieved operating revenue of 20.093 billion yuan, representing a year-on-year increase of 3.90% [1] - The net profit attributable to shareholders reached 11.662 billion yuan, reflecting a year-on-year growth of 16.66% [1] - Basic earnings per share were 1.75 yuan, which is a 6.71% increase compared to the previous year [1] Asset and Loan Quality - As of the end of the reporting period, the company's total assets amounted to 2,235.595 billion yuan, an increase of 5.83% from the end of the previous year [1] - The non-performing loan ratio stood at 0.76%, remaining stable compared to the end of the previous year [1] - The provision coverage ratio was 520.89%, maintaining a leading position in the industry [1]