Huafu Securities·2025-08-27 07:49Investment Rating - The investment rating for Chongqing Bank is "Buy," indicating an expected relative price increase of over 20% compared to the market benchmark index within the next six months [26]. Core Views - Chongqing Bank's profitability is steadily improving, with revenue and net profit attributable to shareholders increasing by 7.0% and 5.4% year-on-year in H1 2025, respectively [2][3]. - The bank is experiencing strong credit growth, with a loan growth rate of 19.5% as of the end of Q2 2025, driven primarily by corporate loans, particularly in infrastructure [3][4]. - Asset quality is showing improvement, with a non-performing loan (NPL) ratio of 1.17% at the end of H1 2025, down 4 basis points from Q1 2025 [4][5]. - The net interest margin (NIM) has stabilized and is expected to improve further, reaching 1.39% in H1 2025, up 4 basis points from the full year of 2024 [5][11]. - Future growth prospects for Chongqing Bank are positive, with projected revenue growth rates of 5.6%, 6.5%, and 7.8% for 2025, 2026, and 2027, respectively [11][13]. Summary by Sections Profitability - In H1 2025, Chongqing Bank's revenue and net profit attributable to shareholders grew by 7.0% and 5.4% year-on-year, with Q2 showing an 8.5% revenue increase compared to the same quarter last year [2][3]. Credit Growth - As of the end of Q2 2025, the bank's loan growth rate was 19.5%, with new loans amounting to 27.4 billion yuan, primarily in corporate lending [3][4]. Asset Quality - The NPL ratio improved to 1.17% at the end of H1 2025, with a significant decrease in the corporate loan NPL ratio to 0.71% [4][5]. Net Interest Margin - The NIM for H1 2025 was reported at 1.39%, reflecting a positive trend in interest income [5][11]. Growth Forecast - Revenue growth is projected at 5.6% for 2025, with net profit growth expected at 6.2%, indicating a stable growth trajectory for the bank [11][13].