SPD BANK(SH:600000) Ge Long Hui·2026-01-05 06:36Core Viewpoint - The report from Zheshang Securities indicates that the banking sector will restart its earnings growth cycle in 2026, with a strong recommendation for Shanghai Pudong Development Bank (SPDB), targeting a price of 16.77 yuan per share, representing a 35% upside from the current price [1] Group 1: Banking Sector Outlook - The banking sector is expected to experience a renewed earnings growth cycle in 2026, prompting a reevaluation of the valuation of bank stocks in the capital market [1] - The absolute return potential for bank stocks in 2026 is viewed positively [1] Group 2: Shanghai Pudong Development Bank (SPDB) - SPDB is highlighted as having strong growth momentum compared to its peers, with a favorable operational outlook [1] - The bank leads in market share within the Yangtze River Delta region, which is a key economic growth engine for China, with its loan and deposit scale ranking first among joint-stock banks as of Q2 2025 [1] - SPDB's asset quality is improving, with a declining non-performing loan ratio for eight consecutive quarters since Q3 2023, and an increasing provision coverage ratio for six consecutive quarters since Q2 2024 [1] - The alignment of management philosophy and collaborative management style of the core leadership team has been validated by past operational performance, suggesting a continuation of SPDB's positive operational trend in the future [1]