Bank of Chengdu(SH:601838) Orient Securities·2024-04-25 13:32Investment Rating - The report maintains a "Buy" rating for Chengdu Bank, with a target price of 19.55 CNY per share, based on a historical valuation method that references the average valuation over the past five years [5][3]. Core Insights - Chengdu Bank's revenue growth remains resilient, with a year-on-year revenue increase exceeding 6% in Q1 2024, despite a slight decline in profit growth compared to previous quarters [2]. - The bank's net interest income has improved, with a year-on-year growth of 8.0% in Q1 2024, supported by strong asset deployment and stable interest margins [2]. - The bank is actively expanding its loan portfolio, with a year-on-year growth rate of 27.0% as of Q1 2024, focusing on strategic projects in the Chengdu-Chongqing economic circle [2]. - Asset quality remains strong, with a non-performing loan ratio decreasing to 0.66%, the lowest since its listing, and a capital adequacy ratio showing marginal improvement [2]. Financial Summary - Chengdu Bank's projected financials indicate a steady growth trajectory, with expected net profit growth rates of 13.1% for 2024 and 2025, and 13.8% for 2026 [3]. - The bank's earnings per share (EPS) are forecasted to be 3.46 CNY for 2024, 3.91 CNY for 2025, and 4.45 CNY for 2026, with a corresponding price-to-book (PB) ratio of 0.73X for 2024 [3][4]. - Key financial metrics for 2024 include total revenue of 22,891 million CNY, operating profit of 15,542 million CNY, and net profit attributable to shareholders of 13,198 million CNY [4].