HZBank(SH:600926) Orient Securities·2024-10-22 03:40Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank [4][2] Core Views - Revenue structure optimization leads to a continued increase in net interest income growth, with a quarter-on-quarter increase of 3.4% compared to the first half of 2024, benefiting from high asset deployment and stable interest margins [1] - Strong expansion momentum is observed, with total assets and loans growing at 12.7% and 15.9% year-on-year respectively, supported mainly by corporate loans [1] - Asset quality remains excellent, with a non-performing loan ratio of 0.76% and a sufficient provision coverage ratio of 543.3%, indicating a robust profit space from provisions [1] Summary by Sections Financial Performance - As of Q3 2024, Hangzhou Bank's revenue, PPOP, and net profit attributable to shareholders showed year-on-year growth rates of 3.9%, 3.4%, and 18.6% respectively, despite a slight slowdown in growth rates compared to H1 2024 [1] - The bank's net interest income growth continued to improve, reflecting a positive trend in revenue structure [1] Asset and Liability Management - Total assets and loans grew at 12.7% and 15.9% year-on-year, with corporate and personal loans increasing by 17.9% and 12.0% respectively [1] - Total liabilities and deposits increased by 12.1% and 16.3% year-on-year, with a notable rise in the proportion of time deposits to loans [1] Profitability Forecast - The forecast for net profit growth for 2024, 2025, and 2026 is 19.9%, 17.2%, and 13.5% respectively, with EPS projected at 2.76, 3.25, and 3.71 yuan [2] - The current stock price corresponds to a PB ratio of 0.81X, 0.71X, and 0.61X for the years 2024, 2025, and 2026, respectively [2]