HZBank(SH:600926) Orient Securities·2025-08-28 11:23Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank with a target price of 16.64 CNY per share, reflecting a 20% premium over the comparable company's PB of 0.79x for 2025 [3][6]. Core Insights - The company's net profit for 2025 is projected to grow by 16.2%, with BVPS expected to be 17.52 CNY. The current stock price corresponds to PB ratios of 0.91x, 0.78x, and 0.68x for 2025, 2026, and 2027 respectively [3][6]. - As of H1 2025, Hangzhou Bank's revenue, PPOP, and net profit growth rates are 3.9%, 4.7%, and 16.7% respectively, showing a slight recovery compared to Q1 2025 [10]. - The bank's total assets and loan amounts grew by 12.6% and 12.2% year-on-year, indicating a cautious approach to credit risk management [10]. - The bank's asset quality remains strong, with a non-performing loan ratio stable at 0.76% and a provision coverage ratio of 521% as of H1 2025 [10]. Financial Performance Summary - Revenue for 2023 is reported at 35,016 million CNY, with projected growth rates of 6.3% for 2024, 3.9% for 2025, and 6.6% for 2026 [5][13]. - The net profit attributable to the parent company is expected to reach 19,727 million CNY in 2025, reflecting a year-on-year growth of 16.2% [5][13]. - The bank's net interest margin has narrowed by 6 basis points compared to 2024, but remains better than the industry average [10].