BANK OF CHANGSHA(SH:601577) Ping An Securities·2025-11-03 07:31Investment Rating - The report maintains a "Recommended" rating for Changsha Bank (601577.SH) with a current stock price of 9.57 yuan [1][9]. Core Views - Changsha Bank has shown good profitability with steady asset and liability expansion. The bank's operating income for the first three quarters of 2025 reached 19.7 billion yuan, a year-on-year increase of 1.3%, while the net profit attributable to shareholders was 6.56 billion yuan, up 6.0% year-on-year [4][7]. - The bank's total asset scale grew by 10.7% year-on-year, with loans increasing by 11.7% and deposits by 8.9% [4][7]. - The bank's net interest margin (NIM) stabilized at 1.55% in Q3 2025, with a decrease in the cost of interest-bearing liabilities [7][9]. Summary by Sections Financial Performance - For 2025, the bank's projected operating income is 27.6 billion yuan, with a year-on-year growth of 6.5%. The net profit is expected to reach 8.24 billion yuan, reflecting a growth of 5.3% [6][11]. - The bank's return on equity (ROE) is projected to be 11.8% in 2025, with earnings per share (EPS) estimated at 2.05 yuan [6][12]. Asset Quality - As of Q3 2025, the non-performing loan (NPL) ratio is 1.18%, with a stable provision coverage ratio of 312% [7][10]. - The bank's asset quality remains robust, with a decrease in the attention rate to 3.25% [7][10]. Growth Potential - The report highlights the bank's strong retail potential, supported by the vibrant consumer activity in Hunan province. The bank is continuously iterating its retail business model, which is expected to enhance its competitiveness in the retail sector [9][10]. - The bank's loan growth rate is projected at 11.8% for 2024, with a steady increase in total assets and deposits [12].