Bank of Chengdu(601838) Guotou Securities·2025-05-05 15:40Investment Rating - The investment rating for Chengdu Bank is "Accumulate-A" with a target price of 18.87 CNY over the next six months [4]. Core Views - Chengdu Bank has demonstrated robust growth in both asset scale and performance, with a revenue growth rate of 5.89% for 2024 and a net profit growth rate of 10.17% [1][9]. - The bank's performance is primarily driven by the expansion of interest-earning assets, although net interest margin compression has been a significant drag on growth in early 2025 [1][8]. - The bank is expected to maintain a stable performance due to its strong asset quality and sufficient provisioning, with projected revenue growth of 8.17% and profit growth of 9.25% for 2025 [9][10]. Summary by Sections Financial Performance - Chengdu Bank's total assets grew by 14.56% year-on-year by the end of 2024, with a quarterly increase of 285 billion CNY, while loans increased by 18.76% year-on-year [1][2]. - In Q1 2025, total assets increased by 13.25% year-on-year, with loans contributing significantly to this growth [1][2]. Loan Growth - Corporate loans showed steady growth, with balances increasing by 20.31% year-on-year by the end of 2024 and 17.69% year-on-year by the end of Q1 2025 [2]. - Retail loans also performed well, with year-on-year growth rates of 12.46% and 13.37% for 2024 and Q1 2025, respectively [3]. Asset Quality - Chengdu Bank maintained a low non-performing loan (NPL) ratio of 0.66% at the end of both 2024 and Q1 2025, indicating strong asset quality [9][10]. - The bank's provisioning coverage ratio was robust at 479.29% by the end of 2024 and 456.00% by the end of Q1 2025, reflecting its strong risk mitigation capabilities [9][10]. Non-Interest Income - Non-interest income showed a significant increase of 24.11% year-on-year in Q4 2024, primarily driven by investment income, although fee income declined [9][10]. Interest Margin - The net interest margin for 2024 was stable at 1.66%, but a significant decline is expected in Q1 2025 due to the impact of interest rate adjustments [8][9]. Future Outlook - The bank is expected to continue focusing on government-related financing while also responding to policy calls to enhance industrial demand and increase technology and green loan offerings in 2025 [2][9].