BANK OF SUZHOU(SZ:002966) Xinda Securities·2024-09-01 10:03Investment Rating - The investment rating for Suzhou Bank is not explicitly stated in the provided documents, but the analysis indicates a positive outlook based on performance metrics and growth potential. Core Insights - Suzhou Bank reported a revenue of 6.388 billion yuan for the first half of 2024, representing a year-on-year growth of 1.88%, while the net profit attributable to shareholders reached 2.953 billion yuan, up 12.10% year-on-year [1] - The bank's total assets stood at 659.5 billion yuan at the end of the first half of 2024, reflecting a year-on-year increase of 13.7% [1] - The growth in corporate loans was particularly strong, with a year-on-year increase of 25.8%, indicating the bank's commitment to supporting the real economy [1] - The bank's non-interest income also showed significant growth, with a 12.5% increase year-on-year, contributing to the rapid growth in net profit [1] - The non-performing loan (NPL) ratio remained stable at 0.84%, indicating solid asset quality [1] Financial Performance Summary - Total revenue for Suzhou Bank is projected to grow from 11,762.96 million yuan in 2022 to 13,990.12 million yuan by 2026, with a compound annual growth rate (CAGR) of approximately 7.51% [2] - The net profit attributable to shareholders is expected to increase from 3,918.44 million yuan in 2022 to 6,342.44 million yuan in 2026, reflecting a CAGR of 10.65% [3] - The bank's earnings per share (EPS) is projected to rise from 1.07 yuan in 2022 to 1.73 yuan in 2026 [3] - The price-to-earnings (P/E) ratio is expected to decrease from 5.32 in 2022 to 4.05 in 2026, indicating potential undervaluation [3] Risk and Capital Adequacy - The bank's capital adequacy ratios are robust, with a core Tier 1 capital adequacy ratio of 9.43%, a Tier 1 capital adequacy ratio of 10.81%, and a total capital adequacy ratio of 13.95% as of the end of the first half of 2024 [1] - The bank's provision coverage ratio slightly decreased to 486.8%, but it remains at a high level, indicating strong risk mitigation capabilities [1]