BANK OF SUZHOU(002966) 申万宏源·2025-01-23 01:49Investment Rating - The report maintains a "Buy" rating for Suzhou Bank, emphasizing its high dividend yield and quality growth potential [1][3]. Core Insights - The successful market-oriented conversion of convertible bonds is expected to enhance the bank's capital base, supporting high-quality growth [6]. - The stock price experienced a decline following the triggering of the redemption clause, which is seen as a buying opportunity [6]. - Continuous shareholding increase by the state-owned shareholder and a stable dividend payout ratio are anticipated short-term catalysts [6]. - The bank is expected to deliver strong earnings growth, with a focus on optimizing its organizational structure and maintaining a stable return on equity (ROE) [6]. - The report projects a steady increase in net profit for the years 2024 to 2026, with expected growth rates of 10.3%, 8.1%, and 9.2% respectively [6]. Financial Data and Earnings Forecast - Total operating income is projected to grow from 11,762.96 million in 2022 to 13,144.77 million by 2026, with a compound annual growth rate (CAGR) of approximately 7.4% [2]. - Net profit attributable to shareholders is expected to rise from 3,918.44 million in 2022 to 5,990.06 million in 2026, reflecting a strong growth trajectory [2]. - The bank's return on equity (ROE) is forecasted to stabilize around 11% over the next few years, indicating solid profitability [2]. - The non-performing loan (NPL) ratio is projected to decrease from 0.88% in 2022 to 0.79% by 2026, suggesting improved asset quality [2]. Market Data - As of January 22, 2025, Suzhou Bank's closing price was 7.76 yuan, with a market capitalization of 30,249 million [3]. - The bank's dividend yield is reported at 7.60%, indicating attractive returns for investors [3]. - The price-to-earnings (P/E) ratio for 2025 is estimated at 6.61, which is competitive compared to peers [3].