BANK OF SUZHOU(002966)2025-01-09 06:53Investment Rating - The report maintains a "Buy" rating for Suzhou Bank [1][8]. Core Views - The significant increase in shareholding by the major shareholder, Guofa Group, from 9% to 14% through multiple rounds of purchases, enhances market confidence and indicates strong long-term investment value [4][6]. - The bank's current price-to-book (PB) ratio is approximately 0.66, with a dynamic dividend yield of 5.1%, suggesting an attractive valuation compared to peers [6][8]. - The bank's asset quality is robust, with a non-performing loan (NPL) ratio below 1% and a provision-to-loan ratio around 4%, positioning it favorably in the market [6][8]. Financial Data and Earnings Forecast - Total revenue for Suzhou Bank is projected to grow from 11,762.96 million RMB in 2022 to 13,144.77 million RMB by 2026, with a compound annual growth rate (CAGR) of approximately 7.4% [5][9]. - The net profit attributable to shareholders is expected to increase from 3,918.44 million RMB in 2022 to 5,990.06 million RMB in 2026, reflecting a growth rate of 9.2% [5][9]. - The bank's return on equity (ROE) is forecasted to remain stable, with slight fluctuations, maintaining a level around 11.7% to 11.8% from 2024 to 2026 [5][9]. Shareholder Activity - Guofa Group has committed to further increasing its stake by at least 300 million RMB over the next six months, which is expected to raise its ownership to over 15% [4][6]. - The recent share purchases by the major shareholder are seen as a strong endorsement of the bank's long-term growth potential and stability [6][8]. Market Position - Suzhou Bank's credit growth has outpaced its peers, with a 14% year-on-year increase in loans as of the third quarter of 2024, indicating strong demand and effective management [6][8]. - The bank's strategy focuses on leveraging local project resources and expanding into key regional markets, which is expected to support sustainable growth [6][8].