HZBank(SH:600926) ZHESHANG SECURITIES·2026-01-23 14:28Investment Rating - The investment rating for Hangzhou Bank is maintained as "Buy" [8] Core Insights - Hangzhou Bank's 2025 performance report indicates that operating revenue and net profit attributable to shareholders increased by 1.1% and 12.1% year-on-year, respectively, with growth rates slowing by 0.3 percentage points and 2.5 percentage points compared to the first three quarters of 2025 [2][3] - The bank's core revenue structure is better than expected, with both net interest income and non-interest income growth rates improving compared to the previous quarters [2] - The bank's loan growth rate as of the end of Q4 2025 was 14.3%, reflecting a 1.7 percentage point increase quarter-on-quarter, attributed to an aggressive lending strategy [3] Financial Performance Summary - For 2025, Hangzhou Bank's net interest income grew by 12.8% year-on-year, with a net interest margin of 1.23%, up by 2 basis points from the previous quarters [2] - Non-interest income saw a decline of 31% year-on-year, with the decrease attributed to market fluctuations [2] - The bank's total loans are projected to continue double-digit growth in 2026, supported by strong loan issuance capabilities [3] - The non-performing loan ratio remained stable at 0.76% as of Q4 2025, with a provision coverage ratio of 502%, indicating a solid risk management position [4] Earnings Forecast and Valuation - The forecast for net profit growth for Hangzhou Bank is 12.05% for 2025, 11.33% for 2026, and 10.40% for 2027, with corresponding book values per share (BPS) of 18.38, 20.96, and 23.40 yuan [5] - The target price is set at 19.09 yuan per share, corresponding to a target valuation of 0.91 times price-to-book (PB) for 2026, indicating a potential upside of 25% from the current price [5]