Huachuang Securities·2025-10-26 08:47Investment Rating - The report maintains a "Recommendation" rating for Chongqing Bank, with a target price of 13.17 CNY / 9.90 HKD [2][4]. Core Insights - Chongqing Bank reported a revenue of 11.74 billion CNY for the first three quarters of 2025, reflecting a year-on-year growth of 10.4%. The net profit attributable to shareholders reached 4.879 billion CNY, up 10.19% year-on-year. The non-performing loan (NPL) ratio decreased by 4 basis points to 1.13%, while the provision coverage ratio remained stable at 248% [2][4]. - The bank's net interest income exceeded expectations, with a quarterly revenue of 4.081 billion CNY in Q3 2025, a year-on-year increase of 17.38% [7]. - The asset quality improved, with the NPL ratio declining and the net profit growth outpacing revenue growth due to improved revenue streams [7]. Financial Performance Summary - Revenue and Profit Growth: The bank's revenue growth is supported by strong demand for corporate loans in the Sichuan-Chongqing region, with a significant increase in net interest income [7]. - Loan Performance: Corporate loans saw a substantial increase, with new corporate loans amounting to 21.38 billion CNY in Q3 2025, while retail loan demand weakened [7]. - Net Interest Margin: The net interest margin stabilized and increased by 17 basis points to 1.40% in Q3 2025, driven by stable asset pricing and reduced funding costs [7]. - Asset Quality: The NPL ratio improved, with a decrease in the net generation rate of non-performing loans, indicating a reduction in credit risk [7]. Financial Projections - Revenue Forecast: Projected total revenue for 2025 is 14.758 billion CNY, with a year-on-year growth rate of 7.9% [8]. - Net Profit Forecast: The net profit attributable to shareholders is expected to reach 5.555 billion CNY in 2025, reflecting an 8.6% increase [8]. - Key Ratios: The projected price-to-earnings (P/E) ratio for 2025 is 6.36, and the price-to-book (P/B) ratio is expected to be 0.63 [8].