苏农银行2023年年报及2024年一季报点评：城区扩张持续推进，资产质量持续夯实

Investment Rating - The report upgrades the investment rating of Su Nong Bank to "Buy" with a target price based on the last closing price of 5.28 [1]. Core Insights - Su Nong Bank reported a revenue of 4.046 billion and a net profit of 1.743 billion for 2023, showing a year-on-year growth of 0.21% and 16.04% respectively. In Q1 2024, the revenue and net profit were 1.096 billion and 414 million, reflecting a year-on-year increase of 10.56% and 15.83% [2]. - The bank's weighted ROE for 2023 and Q1 2024 was 11.67% and 2.59%, with a year-on-year increase of 0.75 percentage points and 0.25 percentage points [2]. - As of Q1 2024, the non-performing loan ratio stood at 0.91%, unchanged from the end of 2023, while the provision coverage ratio increased to 453.71%, up by 0.86 percentage points from the end of 2023 [2]. - The bank's non-interest income for 2023 and Q1 2024 was 1.080 billion and 371 million, with year-on-year growth of 20.07% and 1.18%, primarily supported by investment income [2]. - The bank's total assets, loans, and deposits as of the end of 2023 increased by 12.36%, 12.15%, and 12.28% respectively, with further growth in Q1 2024 [2]. - The bank's net interest margin for Q1 2024 was 1.44%, a decrease of 30 basis points from 2023, attributed to pricing pressures [2]. - The bank's strategic expansion in urban areas is ongoing, with a significant increase in loan proportions from the Suzhou area [2]. Financial Projections - Revenue projections for Su Nong Bank from 2024 to 2026 are estimated at 4.259 billion, 4.528 billion, and 4.894 billion respectively, with corresponding growth rates of 5.26%, 6.33%, and 8.08% [11]. - Net profit projections for the same period are 1.987 billion, 2.283 billion, and 2.625 billion, with growth rates of 13.20%, 14.90%, and 14.96% [11]. - The book value per share (BVPS) is projected to be 9.60, 11.21, and 13.10 for 2024, 2025, and 2026 respectively, with a corresponding price-to-book (PB) ratio decreasing to 0.55, 0.47, and 0.40 [11].