成都银行（601838）：息差稳，不良优

Investment Rating - The investment rating for Chengdu Bank is "Buy" with a target price of 21.12 CNY per share, indicating an upside potential of 18% from the current price of 17.86 CNY [5][7]. Core Insights - Chengdu Bank's H1 2025 earnings growth has improved, with revenue and net profit attributable to shareholders increasing by 5.9% and 7.3% year-on-year, respectively [2][5]. - The bank's asset quality remains strong, with a non-performing loan (NPL) ratio stable at 0.66% and a provision coverage ratio of 453% as of the end of Q2 2025 [4][5]. - Future growth is supported by strong regional economic vitality and robust credit demand, which is expected to sustain rapid profit growth [3][5]. Summary by Sections Earnings Performance - Chengdu Bank's revenue and net profit for H1 2025 increased by 5.9% and 7.3% year-on-year, with quarter-on-quarter growth rates improving by 2.7 percentage points and 1.6 percentage points, respectively [2][5]. - The bank's total assets grew by 14.3% year-on-year, with loans increasing by 18.0% [2][5]. Interest Margin and Cost of Deposits - The net interest margin for Q2 2025 slightly decreased by 2 basis points to 1.58%, but improved by 1 basis point year-on-year, primarily due to a reduction in deposit costs [3][4]. - The cost of deposits improved to 1.96% in H1 2025, down from 2.16% in 2024, benefiting from interest rate cuts [3][4]. Asset Quality - The NPL ratio remained stable at 0.66%, while the attention loan ratio increased slightly to 0.44% [4][5]. - The TTM generation rate for NPLs and attention loans decreased by 14 basis points to 0.27%, indicating continued improvement in asset quality [4][5]. Profit Forecast and Valuation - Chengdu Bank's net profit is projected to grow by 7.95%, 7.35%, and 9.52% for 2025, 2026, and 2027, respectively, with corresponding book values per share of 21.12, 23.60, and 26.35 CNY [5][12]. - The target valuation for 2025 is set at a price-to-book (PB) ratio of 1.0x [5].