HZBank(SH:600926) GUOTAI HAITONG SECURITIES·2026-01-25 00:41Investment Rating - The report maintains a "Buy" rating for Hangzhou Bank with a target price raised to 17.90 CNY [2][6]. Core Insights - Hangzhou Bank's performance in 2025 continues to show high growth, with non-performing loan indicators improving beyond expectations, positioning the bank at the top of the industry in terms of safety and growth [2]. - The bank's net profit growth forecast for 2025-2027 is set at 12.4%, 11.2%, and 10.7% respectively, reflecting a strong growth trajectory [12]. Financial Summary - Revenue and Profit Forecasts: - 2023A Revenue: 35,016 million CNY, 2024A: 38,381 million CNY, 2025E: 38,830 million CNY, with a growth rate of 6.3% in 2023A and 9.6% in 2024A [4]. - 2023A Net Profit: 14,383 million CNY, 2024A: 16,983 million CNY, 2025E: 19,089 million CNY, showing a growth of 23.2% in 2023A and 18.1% in 2024A [4]. - Asset Quality: - As of Q4 2025, the non-performing loan ratio is 0.76%, and the provision coverage ratio is 502.24%, indicating stable asset quality [12]. - The bank's overdue loans within 90 days and over 90 days have decreased, reflecting improved asset quality management [12]. - Capital Adequacy: - The core Tier 1 capital adequacy ratio stands at 8.85%, indicating a strong capital position [8]. Investment Strategy - The report emphasizes the bank's focus on regional growth, leveraging its strengths in government and corporate banking, while also enhancing services for small and micro enterprises and technology innovation [12]. - The bank's strategy includes developing six new branches in different regions to create long-term growth potential [12].