Bank of Chengdu(601838) 长江证券·2025-02-12 01:49Investment Rating - The investment rating for Chengdu Bank is "Buy" and is maintained [5]. Core Views - Chengdu Bank's 2024 annual revenue growth rate is 5.9%, with a significant increase of 14.7% in the fourth quarter. The net profit attributable to shareholders is expected to grow by 10.2% year-on-year [1][3]. - The bank's total assets grew by 15% year-on-year, indicating robust expansion. The credit growth is anticipated to remain strong into 2025, with a good start expected [1][6]. - The net interest margin is expected to stabilize in the fourth quarter, while the cost of liabilities is projected to improve [1][6]. - Asset quality remains strong, with a non-performing loan ratio stable at 0.66% and a provisioning coverage ratio decreasing by 18 percentage points to 479% [1][6]. Summary by Sections Performance - Chengdu Bank reported a significant revenue increase in Q4, with a year-on-year growth of 14.7%. The annual revenue growth for 2024 is 5.9%, while the net profit attributable to shareholders is expected to grow by 10.2% [1][3][6]. - The bank's asset quality is excellent, with a non-performing loan ratio of 0.66% and a provisioning coverage ratio of 479% [1][6]. Scale - The total assets of Chengdu Bank increased by 15% year-on-year, with a quarterly growth of 2.3%. The bank is expected to continue expanding its credit portfolio in 2025 [1][6]. Interest Margin - The net interest margin is projected to stabilize in Q4, with the cost of liabilities expected to improve significantly due to a high proportion of fixed-term deposits [1][6]. Asset Quality - The bank maintains industry-leading asset quality metrics, with a non-performing loan ratio of 0.66% and a provisioning coverage ratio of 479%, indicating strong risk mitigation capabilities [1][6]. Investment Recommendations - The report suggests that Chengdu Bank will benefit from the economic growth in the Chengdu-Chongqing region, with expectations for continued high growth in credit and stable asset quality metrics [1][6]. The bank's capital position has been strengthened through successful convertible bond conversions, enhancing its long-term operational capacity [1][6].