Bank of Chengdu(SH:601838) HTSC·2025-09-21 08:31Investment Rating - The investment rating for Chengdu Bank is maintained at "Buy" with a target price of RMB 23.33 [1][9]. Core Views - The report highlights the steady progress of the major shareholder's increase in holdings, reflecting confidence in the bank's value and development potential [5][6]. - Recent trends show a wave of share buybacks among listed banks, indicating strong recognition of value and confidence in future growth [8]. - The bank's fundamentals remain solid, with a stable transition in management and a focus on risk control, maintaining a high provision coverage ratio [7]. Financial Performance and Forecast - Chengdu Bank's revenue and net profit are projected to grow steadily, with expected revenues of RMB 22,982 million in 2024 and RMB 24,311 million in 2025, reflecting growth rates of 5.89% and 5.78% respectively [4][19]. - The bank's net profit attributable to shareholders is forecasted to reach RMB 12,858 million in 2024 and RMB 13,817 million in 2025, with growth rates of 10.17% and 7.46% respectively [4][19]. - The non-performing loan ratio is expected to remain stable at 0.66% for 2025 and 2026, indicating strong asset quality management [4][19]. Valuation Metrics - The report maintains a target price-to-book (PB) ratio of 1.10 for 2025, with a corresponding target price of RMB 23.33, reflecting the bank's strong position in the industry [9]. - The forecasted earnings per share (EPS) for 2025 is RMB 3.26, with a price-to-earnings (PE) ratio of 5.38 [19]. - The dividend yield is projected to increase from 4.99% in 2024 to 5.37% in 2025, indicating a commitment to returning value to shareholders [19].