BANK OF CHANGSHA(SH:601577) KAIYUAN SECURITIES·2025-04-30 01:43Investment Rating - The investment rating for Changsha Bank is "Buy" (maintained) [1] Core Views - The bank's credit investment has accelerated, and non-interest income has achieved high growth. In Q1 2025, Changsha Bank reported revenue of 6.809 billion yuan (YoY +3.78%) and a net profit attributable to shareholders of 2.173 billion yuan (YoY +3.81%), indicating stable profitability. The non-interest income saw significant growth, with fee income increasing by 53.08% YoY and investment net income rising by 123.63% YoY [4][5]. Summary by Sections Financial Performance - In Q1 2025, Changsha Bank's total assets reached 1.21 trillion yuan (YoY +14.13%), with total loan principal amounting to 587.941 billion yuan (YoY +12.56%). The bank added 42.832 billion yuan in new loans during the quarter, a significant increase of 26.25% YoY [5]. - The bank's total deposits at the end of Q1 2025 were 750.707 billion yuan (YoY +10.98%), maintaining a high growth rate to better match loan demand [5]. Asset Quality - The asset quality of Changsha Bank remains stable, with a non-performing loan ratio of 1.18% at the end of Q1 2025, a slight increase of 0.01 percentage points from the end of 2024. The attention rate decreased to 2.61%, down 0.02 percentage points [6]. - The provision coverage ratio stood at 309.82%, indicating a solid safety cushion despite a nearly 3 percentage point decline from the end of 2024 [6]. Profitability and Valuation - The bank's profitability remains stable, with a projected net profit attributable to shareholders of 8.235 billion yuan for 2025, reflecting a YoY growth of 5.21%. The current stock price corresponds to a price-to-book ratio (PB) of 0.52 for 2025 [4][7]. - The bank's earnings per share (EPS) for 2025 is estimated at 2.05 yuan, with a price-to-earnings ratio (P/E) of 4.59 [7].