Changshu Bank(SH:601128) GUOTAI HAITONG SECURITIES·2025-10-30 11:56Investment Rating - The investment rating for the company is "Accumulate" with a target price of 8.13 CNY [6][11]. Core Insights - The report highlights that the retail loan growth for the company has shown a continuous upward trend, while the decline in net interest margin and net profit margin is slowing down each quarter. Core revenue growth is accelerating, supported by the progress in the transformation of village banks into branches, which further expands the company's development footprint [2][11]. Financial Summary - The company's projected financials are as follows (in million CNY): - Revenue: 9,870 in 2023, expected to grow to 15,060 by 2027, with a CAGR of 12.1% [4]. - Net profit attributable to the parent company: 3,282 in 2023, expected to reach 5,751 by 2027, reflecting a CAGR of 15.9% [4]. - Book value per share (BVPS): Expected to increase from 8.99 in 2023 to 12.15 by 2027 [4]. - Return on equity (ROE): Projected to rise from 12.8% in 2023 to 13.8% by 2027 [4]. Performance Metrics - The company reported a year-on-year growth in total assets, loans, and deposits of 10.89%, 7.13%, and 9.69% respectively as of Q3 2025, with a significant loan increment of 5.3 billion CNY in the quarter [11]. - The non-performing loan (NPL) ratio remained stable at 0.76%, with a provision coverage ratio of 462.95% [11]. Growth Drivers - The ongoing transformation of village banks into branches is expected to accelerate, with the company having announced the absorption of eight village banks since October 2024, enhancing its market share in Jiangsu province [11]. - The report indicates that the company has successfully optimized its deposit pricing strategy, leading to a slight increase in the proportion of demand deposits [11].