Changshu Bank(601128) 广发证券·2024-08-21 02:09Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Insights - The company reported a revenue growth of 12.0%, PPOP growth of 22.8%, and net profit growth of 19.6% for the first half of 2024, with performance driven by scale growth, non-interest income, and a decrease in the cost-to-income ratio [2]. - The net interest margin for the first half of 2024 was 2.79%, a decrease of 4 basis points from the previous quarter, primarily due to a decline in the yield on interest-earning assets [2]. - Non-interest income saw a significant increase of 52.9%, largely driven by investment gains from trading clients, which rose by 95.96% year-on-year [2]. - The cost-to-income ratio improved to 35.18%, down 5.85 percentage points year-on-year, mainly due to a reduction in employee expenses [2]. Performance Metrics - The company’s loan growth rate was 11.3% year-on-year, showing a decline compared to previous periods, with retail loan growth being particularly weak [2]. - The non-performing loan (NPL) ratio remained stable at 0.76% as of the end of Q2 2024, while the overdue loan ratio increased to 1.54%, up 32 basis points from the previous year [2]. - The provision coverage ratio was 538.81%, slightly down from the previous quarter, indicating a solid overall asset quality and risk absorption capacity [2]. Earnings Forecast and Valuation - The company is expected to achieve net profit growth rates of 17.36% and 13.36% for 2024 and 2025, respectively, with EPS projected at 1.41 and 1.59 CNY per share [2]. - The current stock price corresponds to a PE ratio of 4.91X for 2024 and 4.33X for 2025, with a PB ratio of 0.68X for 2024 and 0.59X for 2025 [2]. - The report sets a reasonable value of 10.91 CNY per share for the company, suggesting a PB valuation of approximately 1.1X for 2024 [2].