苏农银行（603323）：成本改善助力利润稳健增长

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 6.33 [7][5]. Core Insights - The company has shown steady profit growth driven by cost improvements, with a 5.0% year-on-year increase in net profit and a 0.1% increase in revenue for the first nine months of 2025 [1]. - Credit growth has accelerated, with total assets, loans, and deposits growing by 7.9%, 8.7%, and 7.3% respectively at the end of Q3 2025, indicating a strong expansion strategy [2]. - The narrowing decline in net interest margin, which stands at 1.35%, is attributed to improved funding costs, despite a 3.8% year-on-year decrease in net interest income [3]. - The non-performing loan (NPL) ratio remains stable at 0.90%, with a significant reduction in asset impairment losses by 61.2% year-on-year, contributing positively to profit growth [4]. Summary by Sections Financial Performance - For the first nine months of 2025, the company reported a net profit of RMB 2,043 million, with a year-on-year growth of 5.1% projected for 2025 [10][29]. - The cost-to-income ratio improved to 29.9%, down 3.0 percentage points year-on-year, reflecting effective cost management [3]. Credit and Asset Quality - The company issued new loans totaling RMB 16 billion in Q3 2025, with a focus on corporate lending, while retail demand is still recovering [2]. - The NPL generation rate for Q3 2025 was measured at 0.45%, down 52 basis points from Q2, indicating improved asset quality [4]. Valuation Metrics - The estimated price-to-book (PB) ratio for 2026 is set at 0.60, with a target price of RMB 6.33, reflecting a premium valuation due to the company's clear development strategy and expansion potential [5][24].