Group 1 - The company will suspend the conversion of "Changyin Convertible Bonds" during the rights distribution period from May 27, 2025, until the first trading day after the rights registration date [1][2] - The rights distribution plan includes a cash dividend of 2.50 yuan (including tax) for every 10 shares and a capital reserve increase of 1 share for every 10 shares held [1][2] - The company will announce the adjustment of the conversion price for "Changyin Convertible Bonds" in accordance with the relevant regulations after the rights distribution [2]

| 证券代码：601128 | 证券简称：常熟银行 | 公告编号：2025-020 | | --- | --- | --- | | 转债代码：113062 | 转债简称：常银转债 | | | 证券代码 | 证券简称 | 停复牌类型 | 停牌起始日 | 停牌期间 | 停牌终止日 | 复牌日 | | --- | --- | --- | --- | --- | --- | --- | | 113062 | 常银转债 | 可转债转股停牌 | 2025/5/27 | | | | 江苏常熟农村商业银行股份有限公司 关于实施 2024 年度权益分派时"常银转债" 停止转股的提示性公告 一、2024 年度权益分派方案的基本情况 江苏常熟农村商业银行股份有限公司（以下简称"本行"）董事会及全体董事 保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗漏，并对其内容的 真实性、准确性和完整性承担个别及连带责任。 2025 年 4 月 25 日，本行 2024 年度股东大会审议通过了本行 2024 年度利润分 配方案，决定以实施权益分派股权登记日普通股总股本为基数，向登记在册的全 体普通股股东每 10 股派发现金股利 2.50 ...

Industry Investment Rating - The investment rating for the banking industry is "Outperform the Market" and is maintained [1] Core Viewpoints - The recent round of deposit rate cuts is expected to have a positive impact on net interest margins for listed banks, with a static assessment indicating that a 10 basis point (BP) reduction in the Loan Prime Rate (LPR) and deposit rate cuts would affect net interest margins by -6.15 BP and +8.33 BP respectively [4][15][19] - The report emphasizes the importance of maintaining reasonable net interest margins to better serve the real economy, suggesting that a reasonable margin could be around 1.45% if the provision coverage ratio is lowered to 150% [5][24][26] - Future regulatory measures may include self-discipline mechanisms to standardize deposit and loan pricing, and to control the average repricing cycle of deposits [6][27] Summary by Sections 1. Impact of New Deposit Rate Cuts - The new round of deposit rate adjustments began on May 20, with various rates reduced by 5 to 25 BP across different terms [14][16] - The expected positive impact on net interest margins is based on the assumption that 80% of term deposits are within a 2-year period [15] 2. Importance of Protecting Bank Interest Margins - Protecting interest margins is crucial for banks to maintain stable operations and support the real economy [5][24] - The report calculates that if the provision coverage ratio is adjusted to 150%, the reasonable interest margin would be approximately 1.45% [26] 3. Future Regulatory and Asset-Liability Management Outlook - The report outlines potential future actions, including self-regulation to avoid excessive competition in deposit and loan pricing [6][27] - It highlights the importance of matching the repricing cycles of loans and deposits to stabilize interest rates [27] 4. Investment Recommendations - The report suggests focusing on state-owned banks like Industrial and Commercial Bank of China, China Construction Bank, and Bank of Communications due to their expected performance in a declining interest rate environment [36] - It also recommends regional banks such as Chongqing Bank and Chengdu Bank, which may benefit from fiscal policy support [36]

Core Viewpoint - The development of foreign trade is a crucial engine driving high-quality urban economic growth, with Suzhou actively responding to national policies to stabilize foreign trade growth through innovative financial services [1][9]. Group 1: Financial Innovation - Financial innovation is a strong support for foreign trade enterprises to explore international markets, with Suzhou financial institutions focusing on actual enterprise needs to launch specialized financial products and services [2][3]. - Jiangsu Zhongxin Bo New Energy Technology Co., Ltd. exemplifies the empowerment of foreign trade enterprises by Suzhou financial institutions, achieving rapid growth with significant support from banks [3]. Group 2: Service and Product Innovation - Various financial institutions in Suzhou are innovating services and products to meet diverse enterprise needs, with the Industrial and Commercial Bank of China Suzhou Branch establishing a special credit limit of 300 billion yuan and launching unique products to assist enterprises in expanding globally [4]. - Agricultural Bank of China Suzhou Branch has introduced over ten hedging products to meet different risk management needs of enterprises, while other banks are enhancing support for small and medium-sized enterprises [4]. Group 3: Currency Risk Management - Currency fluctuations pose significant risks for foreign trade enterprises, and Suzhou financial institutions are helping businesses improve their currency risk management capabilities through innovative service models [5][6]. - The Agricultural Bank of China Suzhou Branch established the province's first "Small and Micro Enterprise Currency Risk Hedging Service Center" to provide one-stop services for local enterprises [5]. Group 4: Tailored Services - Suzhou financial institutions are actively providing tailored services to meet the personalized needs of foreign trade enterprises, including dedicated financial advisory services [8]. - Export credit insurance plays a crucial role in stabilizing enterprises' order and export confidence, while domestic trade insurance helps mitigate credit risks in domestic trade [8]. Group 5: Future Outlook - Facing complex international economic conditions, Suzhou financial institutions aim to continuously inject "financial vitality" into the sustainable operation and stable development of foreign trade enterprises [9].

Investment Rating - The report indicates a cautious outlook for the banking sector, with expected revenue and net profit growth rates for listed banks in 2025 projected at approximately -1% and 0% respectively [3][9]. Core Insights - The overall revenue and net profit growth rates for listed banks in Q1 2025 were -1.7% and -1.2% year-on-year, reflecting a decline compared to Q4 2024 [3][9]. - The performance of different types of banks varied significantly, with city and rural commercial banks leading in growth due to improved scale and net interest margin, while state-owned banks showed weaker performance [3][10]. - The net interest margin for listed banks in Q1 2025 was 1.37%, a decrease of 13 basis points year-on-year, but the decline was less severe than in the previous year [3][9]. Summary by Sections Revenue and Profit Overview - Listed banks experienced a decline in revenue and net profit growth rates, with Q1 2025 figures at -1.7% and -1.2% respectively, marking a drop of 1.8 percentage points and 3.5 percentage points from Q4 2024 [3][9]. - The decline in net interest income was attributed to a narrowing interest margin and challenges in volume compensating for price [9]. Asset Quality and Provisioning - The asset quality remained stable, with a decrease in non-performing loan ratios and a reduction in provisioning pressure, as banks continued to report lower provisions in a challenging income environment [3][9]. - The provision coverage ratio for listed banks decreased to 238% in Q1 2025, reflecting a trend of reduced provisioning amid stable asset quality [3][9]. Investment Recommendations - The report suggests that the banking sector's configuration value is enhanced by both fundamental and liquidity factors, with a focus on key index-weighted stocks such as China Merchants Bank and Industrial and Commercial Bank of China [3][9]. - The report highlights the potential for mid-sized banks to attract capital for growth, particularly in the context of capital replenishment and profitability [3][9].

Industry Investment Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Viewpoints - The report highlights that the overall operating income, pre-provision profit, and net profit attributable to shareholders of listed banks for 2024 are expected to grow at rates of 0.08%, -0.72%, and 2.35% respectively. In Q1 2025, these growth rates are projected to decline to -1.72%, -2.15%, and -1.20%, indicating a downward trend in performance due to the impact of interest rate adjustments and market fluctuations [3][10][13] - The report emphasizes that the non-interest income growth of banks has slowed down due to market volatility, which has affected trading positions and overall performance [4][10] - The asset quality of listed banks is showing slight improvement, with the non-performing loan ratio decreasing from 1.24% in 2024 to 1.23% in Q1 2025, and the overall provision coverage ratio remaining stable around 239.91% in 2024 and 237.92% in Q1 2025 [4][10][13] Summary by Sections 1. Impact of Repricing and Market Fluctuations - The report notes that the combination of repricing impacts and market volatility has led to a decline in performance for Q1 2025, with significant drops in revenue and profit growth rates compared to 2024 [3][10] - The performance of city commercial banks has been notably better than other types of banks, with positive revenue growth in both 2024 and Q1 2025 [10][13] 2. Growth of Interest-Generating Assets - The growth rate of interest-generating assets for listed banks was 0.44% in 2024, with a slight increase to 0.79% in Q1 2025. However, the growth in deposits remained stable at 5.59% in 2024 and 6.22% in Q1 2025 [4][10] 3. Interest Margin Performance - The report indicates that both the yield on interest-generating assets and the cost of interest-bearing liabilities have decreased significantly in Q1 2025, affecting the interest margin performance across banks [4][10] 4. Non-Interest Income Growth - Non-interest income growth for listed banks was 6.71% in 2024, but it fell to -1.87% in Q1 2025, primarily due to the impact of market conditions on fee income and other non-interest revenues [4][10] 5. Asset Quality Improvement - The report highlights a slight improvement in asset quality, with a marginal decrease in the non-performing loan ratio and stable provision coverage ratios, indicating a cautious but positive trend in credit quality [4][10][13] 6. Investment Recommendations - The report suggests focusing on major state-owned banks such as Industrial and Commercial Bank of China, China Construction Bank, and Bank of Communications, as well as regional banks like Chongqing Bank and Chengdu Bank, which may benefit from supportive fiscal policies [5][10]

Core Viewpoint - The performance of the banking industry in Q1 2025 is mixed, with some banks showing strong growth while others face significant challenges, particularly in revenue and profit generation [1][13]. Summary by Category City Commercial Banks - Jiangsu Bank leads in operating income with 22.304 billion yuan, a year-on-year increase of 6.21%, and a net profit of 9.78 billion yuan, up 8.16% [1][3]. - Qingdao Bank shows a remarkable revenue growth of 9.69% and a net profit increase of 16.42%, indicating strong market performance [1][3]. - Xiamen Bank struggles with only 1.214 billion yuan in revenue, down 18.42%, and a net profit of 645 million yuan, down 14.21%, reflecting significant operational pressure [1][3][9]. Rural Commercial Banks - Chongqing Rural Commercial Bank reports the highest operating income at 7.224 billion yuan, with a net profit of 3.745 billion yuan, showing a year-on-year increase of 6.25% [1][3]. - Shanghai Rural Commercial Bank faces challenges with a revenue decline of 7.41% and a net profit growth of only 0.34%, indicating insufficient growth momentum [1][3][10]. Strategic Developments - Jiangsu Bank's strategic focus on optimizing asset allocation and enhancing retail and non-interest income has contributed to its strong performance [4][5]. - Qingdao Bank emphasizes a refined strategy targeting three major customer groups and six key industries, enhancing its product offerings and revenue generation [5][6]. Challenges Faced - Xiamen Bank's revenue decline is attributed to a significant drop in core income sources, particularly in commission and fee-related businesses, alongside a decrease in investment income [9][10]. - The overall banking sector faces pressure from narrowing net interest margins and a decline in non-interest income due to market volatility and high base effects from 2024 [13][14].

Core Insights - The report maintains a positive outlook on bank sector investments, emphasizing the stability and dividend attributes of bank stocks, with an average dividend yield exceeding 4.3% [6][16] - The banking sector is expected to benefit from structural changes in the economy, leading to improved return on equity (ROE) and overall performance [7][10] Dimension One: Stability and Dividend Attributes of Bank Stocks - The core revenue growth of banks showed marginal improvement in Q1 2025, with a projected stable annual performance despite a slowdown in revenue and profit growth [10][11] - The average dividend payout ratio for listed banks increased to 26.1%, with an average dividend yield of over 4.3%, indicating strong dividend sustainability [16] - Major banks have received capital injections, enhancing asset quality and stabilizing market expectations, with non-performing loan ratios remaining steady at 1.16% [10][11] Dimension Two: Public Fund Reform and Increased Bank Allocations - The recent public fund reforms are expected to increase allocations to the banking sector, with potential incremental capital of approximately 222.7 billion yuan if funds align with industry benchmarks [10][12] Dimension Three: Influx of Long-term Capital - The acceleration of long-term capital inflows, particularly from insurance funds, is anticipated to provide additional support to bank stocks, with 14 cases of insurance fund acquisitions in 2025 [10][12] Dimension Four: Structural Economic Transformation and ROE Improvement - The banking sector's ROE is projected to stabilize between 8-9%, with potential for upward movement if economic conditions improve and structural transformations accelerate [7][10] Investment Recommendations - Emphasis on bank sector allocation, particularly focusing on state-owned banks and quality regional banks with strong provisioning coverage [7][10] - The report suggests a diversified investment strategy, highlighting the importance of dividend strategies and the potential for valuation improvements in selected banks [7][10]

Investment Rating - The report maintains a "Positive" investment rating for the banking sector [10] Core Insights - The report highlights a positive outlook for active funds gradually correcting the long-standing underweight in bank stocks. With stable fundamentals, the combination of high dividend logic, expansion of passive funds, and increased allocation by active funds is expected to drive the continuous recovery of undervalued bank stocks [2][6] - The market will begin to focus on quality bank stocks at low valuations, particularly those that have been suppressed by various factors. Three main categories of banks are identified for potential investment: 1) Quality city commercial banks previously pressured by convertible bonds; 2) Quality banks with clear pro-cyclical labels; 3) State-owned banks with low valuations affected by short-term factors [2][6] Summary by Sections Category 1: Quality City Commercial Banks - Notable examples include Hangzhou Bank and Nanjing Bank, which have lagged in performance despite strong fundamentals. Nanjing Bank's stock price has reached the forced redemption price of its convertible bonds, with a static PB (LF) valuation of only 0.73x, the lowest among quality banks in the Yangtze River Delta. Hangzhou Bank, with a PB (LF) valuation of 0.85x, is recognized as a leader in asset quality and profit growth, indicating significant undervaluation [7] Category 2: Pro-Cyclical Quality Banks - Examples include Changshu Bank and Ningbo Bank, which have faced valuation pressure due to economic downturn expectations. Despite a 44% and 16% contraction in PB valuations for Ningbo Bank and Changshu Bank respectively, both banks maintain strong performance metrics. If retail loan asset quality stabilizes, these banks are expected to see significant valuation recovery [8] Category 3: Low-Valuation State-Owned Banks - Traffic Bank and Postal Savings Bank are highlighted as state-owned banks with lagging performance and low PB valuations. Traffic Bank's stock has been stagnant due to concerns over fiscal injections diluting dividend yields, yet it is projected to maintain positive growth in 2025. Postal Savings Bank faces similar pressures but could benefit from economic recovery and improved asset quality [8]

Market Overview - A-shares opened higher but quickly entered a downward trend, with the Shanghai Composite Index up 0.17% and the Shenzhen Component down 0.13% by the afternoon close [1] - Total trading volume in the A-share market was 13,260 billion yuan, a decrease of 149 billion yuan from the previous day [1] Banking Sector Performance - The banking sector saw a collective rise, with Shanghai Bank, Pudong Development Bank, and Jiangsu Bank reaching historical highs [2] - The banking sector overall rose by 1.64%, ranking third among industry sectors for the day, with a weekly increase of 1.59% [2] - All 42 constituent stocks in the banking sector experienced gains, with Chongqing Bank rising over 4% and several others, including Shanghai Bank and Pudong Development Bank, increasing over 3% [2] Financial Indicators - In Q1, 42 banks reported a total net profit of 5,639.79 billion yuan, with the four major state-owned banks accounting for over 52% of this profit [3] - Analysts expect the banking sector to stabilize by 2025, with reduced net interest margin pressure and improved asset-liability management [3] Shipping and Port Sector - The shipping sector experienced significant gains, with the shipping index (European line) futures rising over 10% at the open and closing up 5.79% [4] - The shipping concept sector overall rose by 2.51%, ranking second among industry concepts for the day, with notable gains in stocks like Guohang Ocean and Huaguang Source Sea [4] Economic and Trade Relations - Recent U.S.-China trade talks showed signs of easing tensions, positively impacting financial and shipping trade sentiments [5] - The reduction of tariffs and supportive financial policies are expected to enhance corporate profitability and market sentiment in the short term, while promoting high-quality economic development in the long term [5]