Changshu Bank(SH:601128) Ping An Securities·2025-07-24 08:22Investment Rating - The report maintains a "Strong Buy" rating for Changshu Bank, expecting the stock to outperform the market by over 20% within the next six months [11]. Core Views - Changshu Bank's revenue and profit growth remain robust, with a 10.1% year-on-year increase in revenue and a 13.55% increase in net profit attributable to shareholders for the first half of 2025 [4][7]. - The bank's total assets reached 401.3 billion yuan as of June 2025, reflecting a 9.46% growth since the beginning of the year, while total loans and deposits grew by 4.40% and 8.46%, respectively [4][7]. - The bank's asset quality remains excellent, with a non-performing loan (NPL) ratio stable at 0.76% and a high provision coverage ratio of 490% as of June 2025 [7][9]. Summary by Sections Financial Performance - For the first half of 2025, Changshu Bank reported a revenue of 5,000 million yuan and a net profit of 1,800 million yuan, with respective year-on-year growth rates of 10.1% and 13.6% [4][7]. - The bank's projected earnings per share (EPS) for 2025 is 1.33 yuan, with expected growth rates of 15.3% for 2025, 15.0% for 2026, and 13.7% for 2027 [6][7]. Asset Quality - The NPL ratio is projected to decrease slightly from 0.77% in 2024 to 0.72% by 2027, indicating a stable asset quality outlook [9]. - The provision coverage ratio is expected to decline from 501% in 2024 to 437% by 2027, but remains at a high level [9]. Growth Projections - The bank's total assets are expected to grow from 400.1 billion yuan in 2025 to 486.5 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 10.9% [9]. - Customer deposits are projected to increase from 330.4 billion yuan in 2025 to 414.4 billion yuan by 2027, reflecting a strong growth trajectory [9]. Market Position - Changshu Bank continues to focus on retail and small micro-businesses, leveraging its strong pricing power and expanding its market presence through differentiated strategies [7][9].