HZBank(600926) 浙商证券·2025-02-07 00:23Investment Rating - The investment rating for Hangzhou Bank is "Buy" [7] Core Views - Hangzhou Bank's revenue for 2024 is expected to grow by 9.6% year-on-year, significantly exceeding market expectations, with a notable increase in growth rate compared to the first three quarters of 2024 [1][2] - The bank's net profit attributable to shareholders is projected to increase by 18.1% year-on-year, although the growth rate has slightly slowed down compared to the previous quarters [1][2] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.76% at the end of 2024, consistent with the end of Q3 2024 [3] Revenue Growth - The revenue growth of Hangzhou Bank is attributed to a favorable bond market in Q4 2024 and a rebound in other non-interest income [2] - The bank's loans and deposits both showed strong year-on-year growth in Q4 2024, with loans increasing by 16.2% and deposits by 21.7% [2] Asset Quality - The bank's asset quality is highlighted by a non-performing loan ratio of 0.76% and a provision coverage ratio of 541%, which remains among the top tier of listed banks [3] Shareholding Changes - On January 24, 2025, it was announced that New China Life Insurance acquired 5.87% of Hangzhou Bank's shares, reflecting long-term value recognition by insurance capital [4] Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders is an increase of 18.08% in 2024, followed by 15.25% in 2025 and 15.36% in 2026, with a target price set at 20.85 CNY per share, indicating a potential upside of 41% from the current price of 14.77 CNY [5][6]