HZBank(SH:600926) Orient Securities·2025-05-05 07:54Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 16.38 CNY per share [1][7]. Core Views - The company has shown strong performance with a high growth in profits, supported by robust asset expansion capabilities and a favorable profit growth advantage compared to peers, justifying a 20% valuation premium [7]. - The net interest income growth has continued to improve, with a year-on-year increase of 6.8% in Q1 2025, indicating a stabilization in net interest margin [10]. - The asset quality remains strong, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 530%, which is significantly higher than comparable peers [10]. Financial Performance Summary - For the fiscal year 2023, the company reported total revenue of 35,016 million CNY, with a year-on-year growth of 6.3% [9]. - The net profit attributable to the parent company for 2023 was 14,383 million CNY, reflecting a year-on-year increase of 23.2% [9]. - The forecasted net profit growth rates for 2025, 2026, and 2027 are 16.5%, 15.1%, and 15.7% respectively, with earnings per share (EPS) projected to be 3.11 CNY, 3.59 CNY, and 4.15 CNY [7][9]. Asset and Liability Management - As of Q1 2025, total assets and total loans grew by 15.9% and 14.3% year-on-year, respectively, indicating strong loan demand [10]. - The company’s total liabilities and deposits also increased by 15.3% and 21.1% year-on-year, respectively, showcasing effective deposit mobilization [10]. Valuation Metrics - The current price-to-book (PB) ratios for 2025, 2026, and 2027 are projected to be 0.75X, 0.66X, and 0.57X, respectively [7]. - The price-to-earnings (P/E) ratios for the same years are estimated at 4.76, 4.13, and 3.57, indicating a favorable valuation compared to historical averages [9][11].