Bank of Chengdu(SH:601838) EBSCN·2024-08-28 03:32Investment Rating - The report maintains a rating of "Accumulate" for Chengdu Bank (601838.SH) with a current price of 14.96 CNY [1]. Core Views - Chengdu Bank's revenue for the first half of 2024 reached 11.59 billion CNY, a year-on-year increase of 4.3%, while net profit attributable to shareholders was 6.17 billion CNY, up 10.6% year-on-year [1][2]. - The bank's non-interest income grew significantly, accounting for 22% of total revenue, driven by a 31.9% increase in net commission and fee income [2][3]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 0.66% and a provision coverage ratio of 496% as of the end of Q2 2024 [2][3]. Summary by Sections Financial Performance - Chengdu Bank's revenue and net profit growth rates for H1 2024 were 4.3% and 10.6%, respectively, with a return on average equity (ROAE) of 18% [1][2]. - The bank's net interest income and non-interest income growth rates were 1.9% and 13.9%, respectively [1][2]. Asset Quality - As of Q2 2024, the NPL ratio was 0.66%, with a year-to-date increase in NPL balance of 4.3 billion CNY [2][3]. - The bank's provision coverage ratio was 496%, indicating strong risk mitigation capabilities [3][12]. Capital Adequacy - The core tier 1 capital adequacy ratio was 8.2%, with a total capital adequacy ratio of 13.2% as of Q2 2024 [3][9]. - The bank issued 4.3 billion CNY in subordinated bonds to support its capital adequacy ratios [3][9]. Earnings Forecast and Valuation - The report maintains EPS forecasts for 2024-2026 at 3.31, 3.65, and 4.06 CNY, respectively, with corresponding price-to-earnings (P/E) ratios of 4.52, 4.10, and 3.69 [3][4]. - The bank is expected to benefit from strategic opportunities in the Chengdu metropolitan area, enhancing its ability to secure quality corporate projects [3][4].