Bank of Chengdu(601838) 国信证券·2024-04-25 03:00Investment Rating - The investment rating for Chengdu Bank (601838.SH) is "Buy" [2][3] Core Views - Chengdu Bank has shown rapid growth in scale, with a return on equity (ROE) of 18.8% in 2023, maintaining a leading position among peers despite a slight decline of 0.7 percentage points year-on-year [2] - The bank's total assets grew by 18.9% in 2023, reaching nearly 1.2 trillion yuan, with deposits and loans increasing significantly [2][4] - The net interest margin has decreased to 1.81% in 2023, influenced by a decline in asset yield and an increase in liability costs [2] - Asset quality remains strong, with a non-performing loan (NPL) ratio of 0.66% and a provision coverage ratio of 504% as of the first quarter of 2024 [2][4] - The bank's earnings forecasts have been slightly adjusted, with expected net profits of 129 billion yuan for 2024 and 142 billion yuan for 2025, reflecting a growth rate of 10.6% and 9.9% respectively [2][4] Financial Forecasts and Metrics - Revenue is projected to grow from 20.24 billion yuan in 2022 to 27.58 billion yuan in 2026, with a compound annual growth rate (CAGR) of 12.6% [1][4] - The net profit attributable to shareholders is expected to increase from 10.04 billion yuan in 2022 to 15.85 billion yuan in 2026, with a CAGR of 11.8% [1][4] - The diluted earnings per share (EPS) is forecasted to rise from 2.56 yuan in 2022 to 4.08 yuan in 2026 [1][4] - The price-to-earnings (PE) ratio is projected to decrease from 5.6 in 2022 to 3.5 in 2026, indicating an attractive valuation [1][4] - The dividend payout ratio is expected to increase from 5.4% in 2023 to 8.6% in 2026, reflecting a commitment to returning value to shareholders [1][4]