Investment Rating - The report assigns a cautious buy rating to Chongqing Bank [1] Core Views - Chongqing Bank has significantly improved its asset quality and exhibits characteristics of a typical dividend stock with low valuation and high dividends, benefiting from regional economic recovery [2][3] - The bank is the first A+H listed city commercial bank in the western region, covering "one city and three provinces," with a stable market share in Chongqing [2][10] - The bank's credit risk management has improved, with a focus on local business and significant write-offs of non-performing loans [13][15] - The regional economic recovery provides positive options for growth, with Chongqing Bank poised to benefit from government policies aimed at stabilizing growth [2][3] - The bank's current H-share price-to-book (PB) ratio is at a historical low of 0.25x, with a dividend yield exceeding 10% in 2023, indicating high investment value [2][3] Summary by Sections 1. Overview of Chongqing Bank - Chongqing Bank was established in 1996 and became the first A+H listed city commercial bank in the western region in 2021 [7] - The bank has a diversified and decentralized shareholding structure, with no controlling shareholder [7][8] 2. Asset Quality Improvement - The bank's asset quality has significantly improved, with a focus on local business and substantial write-offs of non-performing loans [13][15] - The non-performing loan (NPL) ratio was 1.33% as of Q3 2023, which is higher than comparable peers [19] 3. Profitability and Growth Potential - Chongqing Bank's profitability is slightly below the industry average, with a return on equity (ROE) of 10.2% in 2022, lower than the average of 11.99% for listed city commercial banks [21][23] - The bank's growth in assets and loans has slowed since 2016, reflecting the regional economic conditions [24] 4. Investment Analysis - The bank's low valuation and high dividend yield make it an attractive investment opportunity [2][3] - The regional economic recovery is expected to support the bank's growth and asset quality improvement [2][3]
首次覆盖报告：资产质量持续改善，红利标的特征突出