Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Insights - The company reported a significant increase in performance, with Q1 2024 revenue growing by 12.0% year-on-year and net profit attributable to shareholders increasing by 19.8%, leading to a return on equity (ROE) of 14.74% [3][4]. - Loan growth remains robust, with a year-on-year increase of 15.1% in Q1 2024, supported by a total of 12.8 billion yuan in new loans [4]. - The net interest margin showed a quarter-on-quarter recovery, reaching 2.83%, despite a year-on-year decline of 19 basis points [4]. - Asset quality remains stable, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539% [4]. Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 2.7 billion yuan and a net profit of 952 million yuan, reflecting a year-on-year growth of 12.0% and 19.8% respectively [3][4]. - The cost-to-income ratio improved to 35.3%, while credit impairment losses increased by 21.1% [4]. Loan and Deposit Growth - New loans totaled 12.8 billion yuan in Q1 2024, with corporate loans growing by 13.3% and retail loans by 12.4% [4]. - Deposits increased by 18.1% year-on-year, with approximately 35 billion yuan in new deposits primarily from savings [4]. Interest Margin and Cost Management - The net interest margin for Q1 2024 was 2.83%, with a notable quarter-on-quarter increase attributed to the repricing of existing mortgage loans [4]. - The company is actively managing its deposit structure to optimize funding costs [4]. Asset Quality and Capital Adequacy - The non-performing loan ratio increased slightly by 1 basis point to 0.76%, while the provision coverage ratio improved to 539% [4]. - As of the end of Q1 2024, the core Tier 1, Tier 1, and total capital adequacy ratios were 10.15%, 10.21%, and 13.51% respectively [2][4]. Earnings Forecast - The earnings per share (EPS) estimates for 2024 and 2025 have been adjusted to 1.42 yuan and 1.64 yuan, respectively, with an expected book value per share of 10.24 yuan by the end of 2024 [2][4].

Investment Rating - The report maintains a "Recommended" rating for Changshu Bank (601128) [1] Core Views - The company's revenue and net profit growth remain strong, with a year-on-year increase of 12.05% and 12.01% in 2023 and Q1 2024 respectively, while net profit attributable to shareholders grew by 19.6% and 19.8% [1] - The bank's non-interest income has shown significant improvement, with a year-on-year increase of 14.34% in 2023 and 70.9% in Q1 2024, driven by increased agency service fees and investment income [1] - Asset quality is excellent, with non-performing loan ratios at 0.75% and 0.76% as of the end of 2023 and March 2024, respectively, and a provision coverage ratio of 537.88% and 539.18% [1] Financial Performance Summary - In 2023, net interest income was CNY 8,501.34 million, with a projected increase to CNY 9,454.62 million in 2024, reflecting a growth rate of 19.60% [2] - The bank's total loans reached CNY 2,224.39 billion by the end of 2023, marking a 15% increase from 2022, with individual operating loans growing by 21.12% [1][2] - The net interest margin (NIM) for 2023 and Q1 2024 was 2.86% and 2.83%, respectively, showing a year-on-year decline of 16 basis points and 19 basis points, yet still leading the industry [1] Investment Recommendations - The bank's focus on supporting agriculture and small enterprises solidifies its competitive edge in microfinance, with significant growth potential in credit demand and a strong asset quality [1] - The report forecasts BVPS (Book Value Per Share) of CNY 10.19, 11.62, and 13.31 for 2024, 2025, and 2026, respectively, indicating a favorable outlook for future performance [1][2]

Investment Rating - The report maintains a "Buy" rating for Changshu Bank [3][7][12] Core Views - Changshu Bank's Q1 2024 results demonstrate strong revenue growth and profitability, with a revenue of 2.7 billion yuan, up 12.0% year-on-year, and a net profit of 952 million yuan, up 19.8% year-on-year [3][6][12] - The bank's annualized ROE increased by 0.9 percentage points to 14.7%, indicating a solid growth trajectory [3][6] - The bank's asset quality remains strong, with a slight increase in the non-performing loan (NPL) ratio to 0.76% and a provision coverage ratio of 539% [3][7][12] Summary by Sections Market Data - Closing price: 7.5 yuan - Market capitalization: 19,825 million yuan - Price-to-book ratio: 0.8 [3] Financial Performance - Q1 2024 revenue: 2.7 billion yuan, up 12.0% YoY - Q1 2024 net profit: 952 million yuan, up 19.8% YoY - Q1 2024 NPL ratio: 0.76%, up 1 basis point from the beginning of the year - Provision coverage ratio: 539%, up 1.3 percentage points from the beginning of the year [3][6][12] Growth Drivers - Interest income increased by 5.6% YoY, with a net interest margin of 2.8% in Q1 2024, only slightly down from the previous year [3][7] - Non-interest income surged by 71% YoY, contributing significantly to revenue growth [3][6] - Loan growth maintained at approximately 15% YoY, with deposits growing at 18% YoY, indicating a balanced growth strategy [3][6][12] Future Outlook - The bank is expected to continue its strong performance with projected net profit growth rates of 17.3%, 17.6%, and 18.7% for 2024-2026 [7][12] - The current stock price corresponds to a 2024 price-to-book ratio of 0.72, supporting the "Buy" rating [7][12]

Investment Rating - The investment rating for Changshu Bank (601128) is not explicitly stated in the provided content, but the report indicates a positive outlook based on strong financial performance and growth metrics [1]. Core Insights - Changshu Bank reported a year-on-year net profit growth of 19.80% in Q1 2024, slightly up from 19.60% in the same period of 2023, with operating revenue growth at 12.01% [1]. - The bank's annualized weighted ROE reached 14.74%, an increase of 91 basis points year-on-year, while the annualized ROA was 1.17%, up by 4 basis points [1]. - The bank has maintained double-digit growth in revenue for 12 consecutive quarters, indicating strong operational performance [1]. - The net interest margin (NIM) slightly narrowed to 2.83%, down 19 basis points year-on-year, primarily due to a decline in loan rates affecting interest-earning asset yields [1]. - Non-performing loan ratio increased slightly to 0.76%, but remains low compared to peers, with a provision coverage ratio of 539.18% [1]. Financial Performance Summary - For Q1 2024, Changshu Bank's operating revenue was CNY 110 billion, with a growth rate of 12.01% [2]. - The net profit attributable to shareholders was CNY 39 billion, reflecting an 18.40% growth rate [2]. - The bank's earnings per share (EPS) is projected to grow from CNY 1.42 in 2024 to CNY 2.03 by 2026 [2]. - The price-to-earnings (P/E) ratio is expected to decrease from 5.61 in 2024 to 3.91 by 2026, indicating potential undervaluation [2]. - The price-to-book (P/B) ratio is projected to decline from 0.79 in 2024 to 0.61 by 2026, suggesting a favorable investment opportunity [2]. Growth Drivers - The bank's growth is attributed to its focus on micro and small enterprises, maintaining a strong asset quality while expanding its scale [1]. - The bank's total assets, liabilities, loans, and deposits showed year-on-year growth rates of 15.05%, 15.24%, 15.01%, and 18.02% respectively [1]. - The bank's capital adequacy remains robust, with a core Tier 1 capital ratio of 10.15% as of Q1 2024, supporting its expansion plans [1].

Investment Rating - The report maintains a "Buy" rating for Changshu Bank [6] Core Views - Changshu Bank reported strong performance in Q1 2024, with revenue of 2.7 billion yuan, a year-on-year increase of 12.0%, and a net profit attributable to shareholders of 0.95 billion yuan, up 19.8% year-on-year [1][2] - The bank's asset quality remains stable, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539.18% as of March 2024 [3] - The bank's financial performance is supported by resilient net interest margins, increased investment income, and a declining cost-to-income ratio [2] Financial Performance - Revenue growth for Q1 2024 was driven by a 5.6% increase in net interest income, despite a 6.1 percentage point decline compared to the previous year [2] - Non-interest income surged by 70.9% in Q1 2024, primarily due to rising bond investment returns [2] - The cost-to-income ratio improved, decreasing by 4.9 percentage points year-on-year, reflecting enhanced operational efficiency [2] Asset Quality - As of Q1 2024, the non-performing loan balance increased to 1.79 billion yuan, with a slight rise in the non-performing loan ratio [3] - The provision coverage ratio improved by 1.3 percentage points compared to the end of the previous year, indicating stronger risk management [3] Asset and Liability Management - Total assets grew by 15.1% year-on-year, with loans increasing by 15.0% [4] - Deposits rose by 18.0%, with significant contributions from personal fixed deposits and corporate current deposits [4] Future Outlook - The bank aims for a revenue growth target of around 10% and a profit growth target of approximately 18% for 2024 [4] - Projected net profits for 2024-2026 are estimated at 3.91 billion yuan, 4.68 billion yuan, and 5.62 billion yuan, respectively [4]

Investment Rating - The report maintains a "Strong Buy" rating for Changshu Bank (601128.SH) [8][9][10] Core Insights - Changshu Bank reported strong financial performance in Q1 2024, with revenue, pre-provision profit, and net profit reaching 2.7 billion, 1.73 billion, and 0.95 billion respectively, representing year-on-year growth of 12.0%, 21.1%, and 19.8% [2][3] - The bank's annualized weighted average ROE increased to 14.74%, up 0.91 percentage points year-on-year, indicating robust profitability [2][3] - Key growth drivers include high growth in scale, non-interest income support, and cost savings, with net interest margin slightly narrowing [3][5] Revenue and Profitability - Core revenue (net interest income + net fee income) grew by 6.1% year-on-year, while other non-interest income surged by 67%, primarily driven by investment income, which increased by 276.8% to 55.6 billion [3][4] - The bank's cost control measures led to a 1.6% reduction in management expenses, contributing positively to pre-provision profit growth of 21.1% [3][4] Asset and Liability Management - The bank maintained a high growth rate in loans and deposits, with loans and financial investments increasing by 15% and 16% year-on-year respectively [4][10] - The deposit growth rate was 18%, reflecting strong performance despite increased competition in the industry [4][10] Interest Margin and Asset Quality - The net interest margin for Q1 2024 was 2.83%, a slight decrease of 3 basis points from 2023, but better than the industry average [5][10] - The bank's non-performing loan ratio stood at 0.76%, with a robust provision coverage ratio of 539.2%, indicating strong asset quality [10][16] Future Outlook - The report forecasts net profit growth rates of 18.6%, 18.1%, and 20.8% for 2024, 2025, and 2026 respectively, with corresponding BVPS of 10.43, 12.14, and 14.18 [10][11] - The bank's strategy focuses on a differentiated approach to inclusive finance, leveraging its local market presence and expanding through branches and village banks [10][19]

Investment Rating - The report maintains a "Recommendation" rating for Changshu Bank (601128) with a target price of 8.60 CNY, while the current price is 7.50 CNY [1]. Core Views - Changshu Bank's Q1 2024 performance is strong, with operating income reaching 2.7 billion CNY, a year-on-year increase of 12.01%, and net profit attributable to shareholders of 950 million CNY, up 19.8% year-on-year [2]. - The bank's growth is attributed to rapid scale expansion and a rebound in net interest margin, with a measured net interest margin of 2.77%, up 25 basis points from the previous quarter [2]. - The bank's asset quality remains stable, with a slight increase in non-performing loan ratio to 0.76%, while the provision coverage ratio improved to 539% [2]. Financial Performance Summary - **Operating Income**: 2023A: 9,869 million CNY; 2024E: 10,993 million CNY; 2025E: 12,353 million CNY; 2026E: 14,047 million CNY [3]. - **Net Profit**: 2023A: 3,282 million CNY; 2024E: 3,848 million CNY; 2025E: 4,613 million CNY; 2026E: 5,508 million CNY [3]. - **Earnings Per Share (EPS)**: 2023: 1.20 CNY; 2024E: 1.40 CNY; 2025E: 1.68 CNY; 2026E: 2.01 CNY [3]. - **Price-to-Earnings Ratio (PE)**: 2024E: 5.36; 2025E: 4.46; 2026E: 3.73 [3]. - **Price-to-Book Ratio (PB)**: 2024E: 0.74; 2025E: 0.64; 2026E: 0.56 [3]. Loan and Asset Quality - **Total Loans**: 2023: 222,440 million CNY; 2024E: 255,806 million CNY; 2025E: 294,177 million CNY; 2026E: 338,304 million CNY [7]. - **Non-Performing Loan Ratio**: 2023: 0.75%; 2024E: 0.75% [7]. - **Provision Coverage Ratio**: 2023: 538.70%; 2024E: 510.70% [7]. Investment Outlook - The report emphasizes Changshu Bank's strong performance and its leading position in micro-lending, projecting revenue growth rates of 11.4%, 12.4%, and 13.7% for 2024-2026, respectively [2][3].

Investment Rating - The report maintains a "Recommended" rating for Changshu Bank, with a closing price of 7.95 yuan as of April 30, 2024, corresponding to 0.8 times the 2024 PB [2][3]. Core Views - Changshu Bank has demonstrated high growth in performance, with a revenue of 2.7 billion yuan in Q1 2024, representing a year-on-year increase of 12.0%, and a net profit attributable to shareholders of 1 billion yuan, up 19.8% year-on-year [1]. - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539% as of Q1 2024, indicating robust risk mitigation capabilities [1]. - The bank's net interest margin (NIM) has shown a narrowing decline, decreasing by 3 basis points to 2.83% in Q1 2024, with expectations for continued stabilization in the future [1][2]. Summary by Sections Financial Performance - In Q1 2024, Changshu Bank's revenue and net profit growth rates are 12.0% and 19.8% respectively, maintaining a leading position among peers [1]. - The bank's total assets, total loans, and total deposits grew by 15.1%, 15.0%, and 18.0% year-on-year respectively [1]. Income Structure - Net interest income increased by 5.6% year-on-year, while non-interest income saw a significant rise of 635.4%, primarily due to low base effects [1]. - The bank's management fees are expected to continue decreasing, supporting overall performance [2]. Asset Quality - The non-performing loan ratio slightly increased by 1 basis point to 0.76%, while the attention ratio rose by 7 basis points to 1.24% [1]. - The provision coverage ratio increased by 1.3 percentage points to 539%, indicating strong risk absorption capacity [1]. Future Projections - Earnings per share (EPS) are projected to be 1.42, 1.69, and 2.02 yuan for the years 2024, 2025, and 2026 respectively [2]. - The bank's total assets are expected to reach 3,854 billion yuan in 2024, with a steady growth trajectory anticipated [10].

Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expected stock performance that will exceed the market by over 20% within the next six months [2][14]. Core Insights - The company reported a 12.0% year-on-year increase in revenue for Q1 2024, reaching 2.7 billion yuan, and a 19.8% increase in net profit attributable to shareholders, totaling 952 million yuan [5][6]. - The annualized weighted average ROE for Q1 2024 was 14.74%, reflecting strong profitability [5]. - The company's asset scale grew by 9.04% year-to-date, with loan and deposit growth rates of 5.76% and 14.35%, respectively [5][6]. - The net interest margin for Q1 2024 was 2.83%, showing a controlled decline compared to the previous year, indicating a competitive position in the industry [6][9]. Financial Performance Summary - Revenue and profit growth: Q1 2024 revenue increased by 12.0% year-on-year, while net profit rose by 19.8% [5][6]. - Asset quality: The non-performing loan (NPL) ratio slightly increased to 0.76%, but the company maintains a strong position in asset quality compared to peers [9]. - Provisioning: The provision coverage ratio improved to 539%, enhancing the company's risk mitigation capabilities [9][12]. Future Projections - The company is expected to maintain strong growth, with projected EPS of 1.42, 1.69, and 2.01 yuan for 2024 to 2026, corresponding to profit growth rates of 18.6%, 19.1%, and 19.0% respectively [9][12]. - The stock is currently trading at a price-to-book (P/B) ratio of 0.77x for 2024, indicating potential undervaluation [9][12].

Financial Performance - Total operating income for Q1 2024 reached CNY 2,699,689, an increase of 12.01% compared to the same period last year[5] - Net profit attributable to shareholders was CNY 952,266, reflecting a growth of 19.80% year-on-year[5] - The bank's net profit for Q1 2024 was CNY 1,026,730, compared to CNY 858,150 in Q1 2023, representing a growth of 19.6%[31] - The total comprehensive income attributable to shareholders of the parent company reached CNY 969,782 thousand, up 16.4% from CNY 833,578 thousand in the same period last year[32] - The basic earnings per share for Q1 2024 was CNY 0.35, compared to CNY 0.29 in Q1 2023, reflecting an increase of 20.7%[32] Asset and Liability Management - Total assets increased to CNY 364,675,935, representing a growth of 9.04% compared to the end of the previous year[5] - The total liabilities as of March 31, 2024, were CNY 336,439,802, an increase of 9.5% from CNY 307,325,494 at the end of 2023[30] - The total adjusted on-balance and off-balance sheet assets amounted to CNY 444,267,429, up from CNY 408,141,175 as of December 31, 2023, representing an increase of 8.9%[22] Loan and Deposit Growth - Total deposits reached CNY 283,516,212, an increase from CNY 247,938,809 at the end of 2023[12] - Total loans amounted to CNY 235,242,933, up from CNY 222,439,155 at the end of 2023[12] - The bank's loan and advance amount reached CNY 226,403,794, up from CNY 214,226,530 at the end of 2023, indicating a growth of 5.5%[29] - The net increase in customer deposits and interbank placements was CNY 34,794,585 thousand, compared to CNY 29,196,419 thousand in the previous year, indicating a growth of 19.2%[33] Cash Flow and Liquidity - Net cash flow from operating activities amounted to CNY 16,847,220, up by 28.49% from the previous year[5] - The net cash flow from operating activities for Q1 2024 was CNY 16,847,220 thousand, a significant increase from CNY 13,112,003 thousand in Q1 2023[34] - The total cash and cash equivalents at the end of Q1 2024 amounted to CNY 13,428,969 thousand, up from CNY 10,467,173 thousand at the end of Q1 2023[34] - The liquidity coverage ratio stood at 325.93%, indicating a strong liquidity position compared to regulatory requirements[21] Investment Performance - Investment income surged by 276.76%, driven by increased returns from trading financial assets[9] - The bank's investment income for Q1 2024 was CNY 556,127, significantly higher than CNY 147,607 in Q1 2023, showing a growth of 276.5%[31] - The cash inflow from investment activities in Q1 2024 was CNY 59,884,702 thousand, a substantial rise from CNY 14,328,384 thousand in Q1 2023[34] - The company experienced a net cash outflow from investment activities of -CNY 12,159,642 thousand, compared to -CNY 10,054,332 thousand in the previous year, indicating increased investment activity[34] Shareholder Information - The number of ordinary shareholders reached 40,712, with the top ten shareholders holding a combined 30.59% of the total shares[23] - The largest shareholder, Bank of Communications Co., Ltd., holds 9.01% of the shares, followed by the National Social Security Fund with 3.31%[23] - The company has not reported any significant changes in the shareholding structure due to the transfer of shares among the top shareholders[25] Risk and Capital Management - The non-performing loan ratio stood at 0.76%, slightly up from 0.75% at the end of 2023[15] - The capital adequacy ratio was reported at 13.51%, a slight decrease from 13.86% in the previous quarter[22] - The leverage ratio decreased to 6.20% from 6.51% in the previous quarter, indicating a reduction in financial leverage[22] - As of March 31, 2024, the core tier one capital net amount reached CNY 27,383,576, an increase from CNY 26,392,626 as of December 31, 2023, reflecting a growth of 3.7%[22] Future Outlook - The net cash outflow for the future is projected at CNY 14,905,744, highlighting potential liquidity challenges[21] - The company engaged with 19 institutions during a conference call on January 9, 2024, indicating active investor relations efforts[26]