Bank of Chengdu(SH:601838) HTSC·2026-03-06 00:25Investment Rating - The report maintains a "Buy" rating for Chengdu Bank with a target price of RMB 23.25 [7]. Core Insights - Chengdu Bank is solidifying its traditional strengths in government financing while achieving synergy between government financing and real economy development [1][2]. - The bank focuses on large and medium-sized clients in its real economy business, leveraging local information and decision-making advantages for differentiated competition [3]. - The bank is enhancing its non-interest income through a focus on agency sales, aiming to expand its product matrix and increase comprehensive income [4]. Summary by Relevant Sections Government Financing Advantages - The bank is increasing its investment in second and third-tier cities while maintaining its core investment advantages in major urban areas. This strategy is expected to improve credit risk stability and enhance asset pricing positively [2]. Differentiated Competition in Real Economy - Chengdu Bank has developed a competitive edge by deeply engaging with quality local clients, utilizing local data and efficient decision-making processes. This allows for quicker information updates and industry judgments, enabling the bank to navigate industry cycles effectively [3]. Non-Interest Income Growth - As of June 2025, the bank's agency sales of wealth management products reached RMB 56.7 billion, with plans to expand this scale significantly in 2026. The bank aims to increase its non-interest income share through wealth management and agency sales, creating new revenue growth drivers [4]. Profit Forecast and Valuation - The bank's projected net profit for 2025-2027 is RMB 135 billion, RMB 144 billion, and RMB 153 billion, reflecting growth rates of 5.1%, 6.4%, and 6.6% respectively. The estimated BVPS for 2026 is RMB 23.61, corresponding to a PB ratio of 0.71 [5].