Bank of Chengdu(601838) 国泰君安·2024-11-03 20:38Investment Rating - The report maintains a "Buy" rating for Chengdu Bank with a target price of 18.65 CNY, reflecting a valuation of 0.95 times for 2024 [2][5]. Core Views - Chengdu Bank's revenue and net profit growth rates for Q3 2024 met expectations, with a year-to-date revenue increase of 3.2% and net profit growth of 10.8%. The bank's asset quality is improving steadily, and the net interest margin showed resilience, slightly exceeding expectations [2][3]. - The bank is strategically positioned in a key area of national development, with strong credit demand and leading growth rates compared to peers. It is focusing on enhancing its traditional strengths in government finance while actively developing retail loans and wealth management [3][5]. - The report adjusts the net profit growth forecasts for 2024-2026 to 10.6%, 7.8%, and 8.8%, respectively, with corresponding book value per share (BVPS) estimates of 19.55, 22.13, and 24.95 CNY [3][4]. Financial Summary - For 2024, the projected revenue is 22,457 million CNY, reflecting a growth of 3.5% from 2023. The net profit attributable to shareholders is expected to reach 12,905 million CNY, a growth of 10.6% [4]. - The bank's net interest income is projected to grow at a rate of 2.5% in 2024, while non-interest income is expected to increase by 11.8% [4][10]. - As of Q3 2024, the bank's non-performing loan (NPL) ratio remains low at 0.66%, with a coverage ratio of 497.4%, indicating strong asset quality [3][4].