Bank of Chengdu(SH:601838) Shenwan Hongyuan Securities·2025-10-29 08:14Investment Rating - The report maintains a "Buy" rating for Chengdu Bank [1] Core Insights - Chengdu Bank's revenue for the first nine months of 2025 reached 17.76 billion yuan, a year-on-year increase of 3.0%, while net profit attributable to shareholders was 9.49 billion yuan, up 5.0% year-on-year [4][6] - The report highlights that the slowdown in revenue and performance is primarily due to non-interest income pressures, with non-interest income declining by 16.5% year-on-year [6][8] - The bank's interest income grew by 8.2% year-on-year, contributing significantly to revenue growth [6][8] - Asset quality remains strong, with a non-performing loan (NPL) ratio of 0.68% and a provision coverage ratio of 433% [6][10] Financial Data and Profit Forecast - Chengdu Bank's total revenue is projected to grow from 21.70 billion yuan in 2023 to 26.55 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 6.58% [5] - Net profit is expected to increase from 11.67 billion yuan in 2023 to 16.14 billion yuan in 2027, with a CAGR of about 10.35% [5] - The bank's return on equity (ROE) is forecasted to decline from 18.78% in 2023 to 14.90% in 2027 [5] Loan Growth and Market Position - Loan growth remains robust, with a year-on-year increase of 17.4% in Q3 2025, driven primarily by corporate lending [6][9] - The bank's corporate loans account for a significant portion of total loans, indicating a strong focus on the corporate sector [9] - The report emphasizes the importance of balancing growth in retail and corporate lending to enhance overall business capabilities [6][10]