HZBank(SH:600926) CMS·2025-04-02 15:39Investment Rating - The investment rating for Hangzhou Bank is "Strongly Recommended" [3] Core Views - Hangzhou Bank has demonstrated stable operations and high growth potential, with a strong performance in Q1 2025, maintaining high profit growth and excellent asset quality indicators [1][6] - The bank's total assets reached 2.2 trillion yuan, a year-on-year increase of 15.8%, with loan and deposit growth rates of 14.3% and 21.1%, respectively [6][6] - The non-performing loan ratio remains low at 0.76%, and the provision coverage ratio is robust at 530.07%, indicating strong asset quality [6][6] - The bank's governance structure is sound, with a stable core management team, which supports its strategic continuity and operational stability [6][6] - The ongoing conversion of 15 billion yuan in convertible bonds is expected to further strengthen the bank's capital base and accelerate business expansion [6][6] Financial Data and Valuation - Total operating revenue (in million yuan) is projected to grow from 32,932 in 2022 to 45,804 in 2026, with a compound annual growth rate (CAGR) of approximately 10.2% [2][37] - Net profit attributable to shareholders is expected to increase from 11,679 million yuan in 2022 to 22,298 million yuan in 2026, reflecting a CAGR of 14.1% [2][37] - Earnings per share (EPS) is forecasted to rise from 1.83 yuan in 2022 to 3.64 yuan in 2026 [2][37] - The price-to-earnings (P/E) ratio is projected to decrease from 8.0 in 2022 to 4.0 in 2026, indicating increasing valuation attractiveness [2][37] - The return on equity (ROE) is expected to remain strong at 12.5% [3] Performance Metrics - In Q1 2025, the bank achieved a year-on-year revenue growth of 2.2% and a net profit growth of 17.3%, continuing its trend of double-digit growth [6][6] - The bank's asset quality remains a core strength, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 530.07% [6][6] - The bank's total assets and deposits have shown strong growth, with total assets increasing by 15.8% year-on-year and deposits growing by 21.1% [6][6]