成都银行：转债触发强赎，增厚资本实力

Investment Rating - The report maintains a "Buy" rating for Chengdu Bank with a target price of RMB 20.25 [4][10] Core Views - The early redemption of convertible bonds will enhance capital strength and support business expansion [4] - The strategic positioning of Sichuan as a key development area provides growth opportunities for Chengdu Bank [6] - The bank's liability costs are expected to improve, and asset quality remains strong [7] Convertible Bond Redemption - The bank triggered the conditional redemption clause for "Chengdu Bank Convertible Bonds" due to the stock price exceeding 130% of the conversion price for 15 consecutive trading days [5] - The redemption will increase the core Tier 1 capital adequacy ratio by 0.61 percentage points to 9.01% [5] - The un-converted balance of the convertible bonds was RMB 2.8 billion as of December 17, 2024 [5] Regional Development Opportunities - Sichuan's strategic positioning as a key development area is expected to boost credit demand [6] - The region's economic growth and capital replenishment have supported Chengdu Bank's leading asset expansion among listed banks [6] - Total assets and loans grew by 14.9% and 22.2% YoY, respectively, as of Q3 2024 [6] Financial Performance and Valuation - The bank's non-performing loan (NPL) ratio was 0.66% as of Q3 2024, the lowest among listed banks [7] - The provision coverage ratio stood at 497%, ranking fourth among listed banks [7] - The report forecasts EPS of RMB 3.08, 3.40, and 3.77 for 2024E, 2025E, and 2026E, respectively [7] - The target PB ratio for 2025 is set at 1.00x, with a target price of RMB 20.25 [7] Financial Projections - Revenue is projected to grow from RMB 22.512 billion in 2024E to RMB 25.530 billion in 2026E [17] - Net profit attributable to shareholders is expected to increase from RMB 12.871 billion in 2024E to RMB 15.768 billion in 2026E [17] - The NPL ratio is forecasted to decline from 0.64% in 2024E to 0.55% in 2026E [17] Peer Comparison - Chengdu Bank's 2025E PB ratio of 0.81x is higher than the average PB ratio of 0.60x for comparable A-share listed banks [13]