NJBK(SH:601009) ZHESHANG SECURITIES·2025-04-22 01:29Investment Rating - The investment rating for Nanjing Bank is "Buy" [9] Core Insights - Nanjing Bank's performance in terms of growth rate, revenue structure, and asset quality has exceeded expectations, with core revenue growing rapidly and asset quality continuing to improve [1] - In Q1 2025, Nanjing Bank's revenue grew by 6.5% year-on-year, while profit increased by 7.1%, although both growth rates showed a decline compared to 2024 [2][3] - The bank's non-performing loan (NPL) ratio remained stable at 0.83% as of Q1 2025, consistent with the end of 2024, while the provision coverage ratio decreased to 324% [2][6] Summary by Sections Financial Performance - In Q1 2025, Nanjing Bank's net interest income improved significantly, increasing by 17.8% year-on-year, driven by higher asset growth and stable interest margins [3] - The bank's interest-earning assets grew by 19.4% year-on-year, with both loan and bond scales accelerating [3][5] - The bank's non-interest income also saw a substantial increase of 18% year-on-year, primarily due to strong performance in wealth management and agency sales [3] Asset Quality - The static indicators show that the NPL ratio was 0.83% and the attention rate was 1.15%, with the latter decreasing by 5 basis points [6] - The dynamic indicators indicate an improvement in the NPL generation rate, which fell to 1.46% for the trailing twelve months, showing a year-on-year improvement [6] Profit Forecast and Valuation - Nanjing Bank is expected to maintain a mid-to-high single-digit growth rate in profits, with projected net profit growth rates of 8.09%, 7.03%, and 6.80% for 2025-2027 [7][14] - The target price is set at 14.26 CNY per share, corresponding to a price-to-book (PB) ratio of 0.91, indicating a potential upside of 37% from the current price [7]