BANK OF SUZHOU(002966) 东吴证券·2025-02-23 23:44Investment Rating - The report assigns a "Buy" rating for Suzhou Bank, indicating a positive outlook for the company's future performance [7]. Core Insights - Suzhou Bank has demonstrated strong performance with high dividends, robust earnings, and low non-performing loans, positioning it as a regional leader ready for growth [7]. - The bank's total assets have shown a compound annual growth rate (CAGR) of 15.1% from 2019 to 2023, with total assets reaching 659.5 billion yuan by mid-2024 [28]. - The bank's net profit has nearly doubled from 2.47 billion yuan in 2019 to 4.6 billion yuan in 2023, reflecting a CAGR of 16.8% [44]. - The bank's dividend payout ratio has remained stable at over 30%, with a current dividend yield exceeding 6% [7]. Summary by Sections 1. Company Overview - Suzhou Bank has evolved from a rural commercial bank to a city commercial bank over nearly three decades, becoming a leader in its sector [10]. - The bank's major shareholder, Suzhou International Development Group, has increased its stake from 9.6% to 14% as of January 2025, indicating confidence in the bank's future [14]. 2. Financial Performance - The bank's total revenue for 2022 was 11.763 billion yuan, with a projected increase to 12.393 billion yuan in 2025, reflecting a growth rate of 1.39% [7]. - The bank's net profit for 2022 was 3.918 billion yuan, expected to rise to 5.712 billion yuan by 2025, with a CAGR of 12.33% [7]. - The earnings per share (EPS) is projected to grow from 0.98 yuan in 2022 to 1.36 yuan in 2025 [7]. 3. Asset Quality - Suzhou Bank has maintained a low non-performing loan (NPL) ratio, which decreased from 1.53% in 2019 to 0.84% in 2023, outperforming many peers [7]. - The bank's strict standards for recognizing non-performing loans have contributed to its superior asset quality [7]. 4. Market Position - The bank's market presence is primarily in Suzhou, with 73.1% of its branches located there, and it aims to expand its footprint across the Yangtze River Delta region [23]. - Suzhou Bank's total assets rank 11th among 17 listed city commercial banks, indicating significant room for growth [28]. 5. Management Team - The management team consists of experienced professionals with extensive backgrounds in the banking industry, enhancing the bank's operational efficiency [19].