Bank of Chengdu(SH:601838) Changjiang Securities·2026-03-12 10:15Investment Rating - The investment rating for Chengdu Bank is "Buy" and is maintained [9] Core Views - Chengdu Bank is a typical representative of high ROE and high valuation bank stocks in recent years. The stock price adjustment since Q3 2025 mainly reflects the slowdown in short-term performance growth and investor divergence regarding the medium-term business structure optimization effects. The new management's push for credit structure optimization aligns with long-term development logic and helps to moderately diversify credit concentration. Chengdu Bank has established a close cooperative relationship with local governments, which is expected to create competitive advantages in the industrial finance sector through the linkage of government finance [2][6][7]. Summary by Relevant Sections Short-term Growth and Long-term Development - Chengdu Bank has a solid competitive advantage in government credit loans, which are expected to remain dominant in the medium term. However, in the long term, the development of industrial finance has broader space due to the current macroeconomic structural transformation. The new management's credit structure optimization is in line with long-term development logic and helps to moderate credit concentration [7]. Loan Growth and Interest Margin - It is expected that the loan scale will moderately slow down in 2026, with high-interest liabilities gradually maturing to support net interest margin stabilization. The bank aims to solidify asset quality indicators, maintaining a leading ROE in the industry [2][9]. Financial Performance and Projections - The bank's total assets are projected to reach approximately 1,549.82 billion by the end of 2026, with a year-on-year growth rate of about 10.55%. The net profit attributable to shareholders is expected to be around 13.94 billion, with a growth rate of 4.15% [25]. The net interest margin is projected to stabilize around 1.58% in 2026, while the non-performing loan ratio is expected to remain low at 0.70% [25][33]. Investment Recommendations - The long-term growth potential and dividend value are emphasized. If the industrial finance transformation proves effective, it will open up a second growth curve and market value expansion space. The stock price adjustment since Q3 2025 has been substantial, with expected dividend yields of 5.4% and 5.6% for 2025 and 2026, respectively. The bank's PB valuation is projected at 0.83x and 0.74x for 2025 and 2026, respectively, maintaining a "Buy" rating [2][9].