Changshu Bank(601128) 长江证券·2024-08-22 11:42Investment Rating - The investment rating for the company is "Buy" and is maintained [3][4]. Core Views - The company has demonstrated strong revenue and profit growth, with a revenue increase of 12.0% year-on-year in H1 2024 and a net profit growth of 19.6% [4][5]. - Interest income has shown a resilient growth of 6.1%, driven by a strong net interest margin and good growth in interest-earning assets [4][5]. - Non-interest income has surged by 56.6%, primarily due to investment income benefiting from the bond market [4][5]. - The company maintains a low non-performing loan (NPL) ratio of 0.76% and a stable provision coverage ratio of 539% [4][5]. Summary by Sections Revenue and Profit Growth - In H1 2024, the company's revenue grew by 12.0%, with Q1 also showing a 12.0% increase. The net profit attributable to shareholders increased by 19.6%, with Q1 growth at 19.8% [4][5]. - The cost-to-income ratio improved, leading to a 23% year-on-year growth in Pre-Provision Operating Profit (PPOP) [4][5]. Loan and Deposit Structure - As of the end of Q2, total loans increased by 7.4% compared to the beginning of the year, with a quarter-on-quarter growth of 1.6% [4][5]. - Total deposits grew by 14.0% compared to the beginning of the year, although there was a seasonal decline of 0.3% quarter-on-quarter [4][5]. - The structure of deposits is improving, with a decrease in the proportion of long-term deposits over three years to 38% [4][5]. Asset Quality - The NPL ratio remained stable at 0.76%, with a net generation rate of 1.26%, which is a 35 basis points increase compared to the previous year [5]. - The company has increased its write-off amounts significantly to maintain stable provisions [5]. Investment Outlook - The company is expected to continue its high growth trajectory, with projected revenue growth of 10.9% and net profit growth of 19.1% for the full year 2024 [5]. - The current valuation is considered low, with a price-to-book ratio of 0.73x for 2024, making it a long-term investment recommendation [5].