Bank of Chengdu(601838) 平安证券·2024-04-25 09:00Investment Rating - Strong Buy (Maintained) [3] Core Views - The company's profitability is robust, and asset quality is solid, with continued optimism for regional dividend release [2] - The company's 2023 and 2024Q1 revenue were 21702 million yuan and 5638 million yuan, with year-on-year growth rates of 7.2% and 6.3% respectively [5] - Net profit attributable to the parent company for 2023 and 2024Q1 were 11671 million yuan and 2851 million yuan, with year-on-year growth rates of 16.2% and 12.8% respectively [5] - The company's 2023 ROE was 18.78%, a decrease of 0.7 percentage points year-on-year, while the annualized ROE for 2024Q1 was 17.04% [5] - Total assets at the end of 2023 were 1.09 trillion yuan, a year-on-year increase of 18.9%, and total assets for 2024Q1 were 1.18 trillion yuan, an increase of 8.01% from the beginning of the year [5] - The 2023 profit distribution plan is a dividend of 0.8968 yuan per share (tax included), with a dividend payout ratio of 30.05% [5] Financial Performance - The company's net interest income in 2024Q1 increased by 8.0% year-on-year, with a slight recovery in net interest income [6] - Non-interest income in 2024Q1 and 2023 decreased by 1.2% and increased by 8.8% year-on-year, respectively [6] - The net income from fees and commissions in 2024Q1 increased by 15.8% year-on-year, while it decreased by 2.3% in 2023 [6] - The company's net interest margin in 2023 was 1.81%, with both asset and liability sides contributing to the drag on the net interest margin [7] - The loan yield at the end of 2023 was 4.61%, and the deposit cost rate was 2.23% [7] - The company's net interest margin in 2024Q1 increased by 4 basis points to 1.65% compared to 2023Q4 [7] Asset Quality and Expansion - The company's total assets at the end of 2024Q1 and 2023 increased by 19.6% and 18.9% year-on-year, respectively, with loan growth rates of 27.0% and 28.3% [9] - The proportion of corporate loans at the end of 2024Q1 increased by 1.72 percentage points to 82.0% compared to the end of 2023 [9] - The company's deposit growth rates at the end of 2024Q1 and 2023 were 16.8% and 19.2%, respectively [9] - The non-performing loan ratio at the end of 2024Q1 and 2023 were 0.66% and 0.68%, respectively, showing a continuous improvement trend [9] - The company's non-performing loan generation rate at the end of 2023 was 0.16%, maintaining a low level [9] - The company's provision coverage ratio and provision-to-loan ratio at the end of 2024Q1 were 504% and 3.33%, respectively, with absolute levels expected to remain leading in the industry [9] Future Outlook - The company is expected to benefit from the regional resource endowment, with potential for continued dividend release [9] - The company's EPS for 2024-2026 is expected to be 3.46 yuan, 3.96 yuan, and 4.55 yuan, respectively, with profit growth rates of 13.1%, 14.3%, and 15.1% [9] - The company's PB for 2024-2026 is expected to be 0.73x, 0.64x, and 0.56x, respectively [9] - The company's valuation premium is expected to continue and rise, supported by its high growth potential and asset quality advantages [9]