GOLDEN SUN SECURITIES·2025-04-13 03:23Investment Rating - The report maintains a positive outlook on the banking sector, highlighting potential investment opportunities due to shareholder confidence and strategic plans for value enhancement [1][3]. Core Insights - Six banks reported their Q1 operational results, with several shareholders and executives announcing stock buyback plans, indicating confidence in their banks' future prospects [1][2]. - The banking sector is expected to benefit from government policies aimed at stabilizing the economy, with a focus on supporting the real estate market and consumer spending [3]. - Key banks to watch include Ningbo Bank, Postal Savings Bank, China Merchants Bank, and Changshu Bank under a cyclical strategy, while Shanghai Bank, China Merchants Bank, Jiangsu Bank, and Chongqing Rural Commercial Bank are highlighted under a dividend strategy [3]. Summary by Sections Q1 Operational Results - Major banks such as Chongqing Bank reported significant growth in assets, loans, and deposits, with year-on-year increases of 19.33%, 16.22%, and 19.26% respectively [2]. - The overall asset quality remains stable, with a slight decrease in non-performing loan ratios for Chongqing Bank and Chongqing Rural Commercial Bank [2][3]. Shareholder Actions - Several banks, including Postal Savings Bank and Everbright Bank, have announced plans for share buybacks, reflecting confidence from major shareholders and executives [1][17]. - Specific buyback amounts include a minimum of 30 million RMB for Huaxia Bank and 20 million RMB for Zhejiang Bank, showcasing a commitment to enhancing shareholder value [1][14]. Market Trends - The banking sector is experiencing a positive trend in net interest income, with Chongqing Bank achieving a revenue growth rate of 5.30% in Q1, an increase of 1.8 percentage points compared to the previous year [2][3]. - The report notes a narrowing decline in interest margins, attributed to improved management of deposit costs and the optimization of liability structures [2]. Key Data Tracking - The average daily trading volume in the stock market reached 1.61 trillion RMB, indicating increased market activity [4]. - The balance of margin financing increased by 0.47% week-on-week, reflecting growing investor engagement [4].