Changshu Bank(SH:601128) Changjiang Securities·2025-06-15 13:02Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company announced its first mid-term dividend plan, reflecting its commitment to shareholder returns and ability to enhance dividend amounts by increasing capital stock by 10% annually in 2024 and 2025 [2][11]. - The bank is accelerating its branch expansion, including the absorption of Jiangsu Rudong Rongxing Village Bank and the establishment of a technology branch in Suzhou High-tech Zone, indicating a clear path for growth [2][11]. - The bank's performance remains strong, with a focus on improving asset quality and maintaining a leading position in industry growth rates [11]. Summary by Sections Company Investment Rating - The current stock price is 7.39 yuan, with a total share capital of 331,649 million shares and a net asset per share of 9.57 yuan [9]. Dividend Policy - The company plans to implement mid-term dividends for the first time, with expectations to increase the dividend per share (DPS) to 0.28 yuan or 0.30 yuan in 2025, resulting in dividend yields of 3.8% and 4.0% respectively [11]. Branch Expansion - The bank has accelerated its branch expansion since Q4 2024, with a clear growth trajectory through various acquisition and establishment strategies, including the absorption of village banks and the establishment of new branches [11][12]. Financial Performance - The bank's net interest margin remains significantly above industry averages, and it is expected to maintain a steady credit growth rate of around 8% in 2025 [11]. - The bank's non-performing loan ratio is projected to improve, with a focus on risk management and asset quality [11]. Market Position - The bank is currently valued at 0.77 times its 2025 price-to-book ratio, indicating it is undervalued compared to historical levels, and is recommended for investment due to its competitive advantages and growth potential [11].