BANK OF CHANGSHA(SH:601577) Guoxin Securities·2025-10-31 02:03Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company's net profit growth continues to improve, with a year-on-year increase of 5.91% in the first three quarters of 2025, reaching 6.56 billion yuan [1] - Non-interest income has shown good growth, with fee income increasing by 9.3% and other non-interest income rising by 17% [1] - The company maintains a stable credit expansion, with total loans growing by 11.27% year-to-date [2] - The non-performing loan ratio is stable at 1.18%, indicating solid asset quality [2] - The company is expected to achieve net profits of 80.8 billion yuan, 85.1 billion yuan, and 93.2 billion yuan for 2025, 2026, and 2027 respectively, with corresponding year-on-year growth rates of 3.2%, 5.3%, and 9.6% [3] Financial Performance Summary - For the first three quarters of 2025, the company achieved revenue of 19.72 billion yuan, a year-on-year increase of 1.29% [1] - The annualized return on equity (ROE) stands at 12.48%, reflecting a high level of profitability despite a slight year-on-year decline [1] - The total assets of the company reached 1.24 trillion yuan, with total deposits of 750 billion yuan and total loans of 610 billion yuan [2] - The annualized net interest margin for the first three quarters is 1.63%, showing a year-on-year decrease of 24 basis points [2] - The company’s financial investments increased by 2.1% from the beginning of the year, with trading financial assets growing by 36.9% [1] Earnings Forecast and Valuation - The forecast for net profit from 2025 to 2027 is 80.8 billion yuan, 85.1 billion yuan, and 93.2 billion yuan, with price-to-book (PB) ratios of 0.51x, 0.47x, and 0.43x respectively [3][4] - The company is expected to maintain a stable growth trajectory, benefiting from a strong retail customer base and supportive economic policies [3]