BANK OF CHANGSHA(601577) GF SECURITIES·2025-01-20 03:46Investment Rating - The investment rating for Changsha Bank is "Buy" with a current price of 8.52 CNY and a target value of 9.97 CNY [4]. Core Views - The report highlights a significant increase in both loan and deposit scales, with total assets and loans growing by 12.45% and 11.61% year-on-year, respectively. The growth rates have improved compared to the previous quarter [9]. - The bank's net profit attributable to shareholders increased by 6.92% year-on-year, with a notable quarterly growth of 10.79% in Q4 [9]. - The report anticipates a continued upward trend in profitability, projecting net profit growth rates of 7.28% and 7.77% for 2025 and 2026, respectively [9]. Summary by Sections Financial Performance - In 2024, the bank's revenue grew by 4.57% year-on-year, with Q4 showing a 6.84% increase compared to the same quarter last year [9]. - The bank's total assets and loans saw a significant increase, with Q4 alone contributing an additional 239 billion CNY in total assets and 19 billion CNY in loans [9]. Asset Quality - The non-performing loan (NPL) ratio decreased to 1.15% at the end of Q4, indicating stable asset quality [9]. - The provision coverage ratio stood at 314.23%, reflecting a solid buffer against potential loan losses [9]. Profitability and Valuation - The report maintains a target price of 9.97 CNY per share, suggesting a price-to-earnings (P/E) ratio of 4.16X for 2025 and 3.85X for 2026, indicating potential for valuation upside [9]. - The bank is expected to benefit from the active consumer market in Hunan, which supports its retail banking growth [9].