BANK OF SUZHOU(002966) HTSC·2024-12-12 08:10Investment Rating - Investment Rating: Buy [1] - Target Price: RMB 9.32 [1] Core Views - The major shareholder, Guofa Group, has increased its stake in Suzhou Bank by 1% this year, reflecting strong confidence in the bank's long-term value and stable development [2][3] - The bank has a clear strategic goal and maintains a stable dividend level, with a projected dividend yield of 5.44% for 2024, ranking among the top in listed banks [1][4] - The bank's management team has also actively increased their holdings, signaling confidence in the bank's steady operations and growth potential [3][4] Financial Performance and Forecast - The bank's net profit for 2024 is projected to be RMB 5.095 billion, with a year-on-year growth rate of 10.75% [4][12] - The bank's return on equity (ROE) is expected to be 10.77% in 2024, with a projected price-to-earnings (PE) ratio of 5.87 [12] - The bank's non-performing loan ratio is expected to remain stable at 0.84% for 2024 [12] Strategic Initiatives - Suzhou Bank has initiated a three-year strategic plan focusing on small and medium-sized enterprises, leveraging its advantages in micro-business operations [4] - The bank's asset quality is considered strong, with a capital increase expected from the conversion of convertible bonds [4][12] Market Position - The bank is rooted in a high-quality regional market, which is expected to provide a valuation premium compared to its peers [4] - The bank's projected book value per share (BVPS) for 2025 is RMB 12.43, corresponding to a price-to-book (PB) ratio of 0.64 [4][12]