Changshu Bank(SH:601128) Donghai Securities·2025-08-13 11:05Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights strong growth in non-interest income and an increase in cash dividend payout ratio [1] - The company achieved operating revenue of 6.062 billion yuan (up 10.10% YoY) and net profit attributable to shareholders of 1.969 billion yuan (up 13.51% YoY) in the first half of 2025 [2] - Total assets exceeded 400 billion yuan, reaching 401.227 billion yuan (up 9.24% YoY) by the end of June [2] - The non-performing loan (NPL) ratio remained stable at 0.76%, while the NPL coverage ratio was 489.53% [2] Summary by Sections Financial Performance - In Q2, the net interest margin was 2.55%, a decrease of 20 basis points YoY, but the decline was narrower than in Q1 [2][4] - The company reported a significant increase in investment income and commission income, with Q2 investment income at 546 million yuan (up 10.53% YoY) and commission income at 71 million yuan (up 869% YoY) [4][5] Asset Quality - The company maintained a prudent approach to asset quality management, with an increase in the proportion of non-performing loans and overdue loans compared to the end of the previous year [4] - The company increased efforts in bad debt disposal, achieving a bad debt write-off ratio of 36.33% and a recovery ratio of 171.56% [4][5] Future Outlook - The report adjusts profit forecasts for 2025-2027, expecting operating revenues of 11.966 billion yuan, 13.214 billion yuan, and 14.551 billion yuan respectively [6][8] - The net profit attributable to ordinary shareholders is projected to be 4.326 billion yuan, 4.934 billion yuan, and 5.598 billion yuan for the same period [6][8] - The company is expected to maintain a stable asset quality while actively expanding non-interest income streams [8]