Bank of Chengdu(SH:601838)2024-04-26 02:00Investment Rating - The investment rating for Chengdu Bank (601838) is "Recommended" (maintained) [2] Core Views - The company reported a steady operational performance with a significant increase in public loans and a recovery in intermediary business income [3] - The bank's revenue and net profit showed year-on-year growth, with operating income increasing by 7.22% in 2023 and 6.27% in Q1 2024, while net profit attributable to shareholders grew by 16.22% and 12.84% respectively [3] - The bank's asset quality remains strong, with a non-performing loan ratio of 0.66% as of March 2024, down 0.02 percentage points from 2023 [3] Summary by Sections Financial Performance - In 2023, the bank's net interest income increased by 6.87%, and in Q1 2024, it rose by 8.05% [3] - The bank's credit impairment losses decreased significantly, with a reduction of 41.54% in 2023 and 12.64% in Q1 2024, supporting profit growth [3] - The bank's return on equity (ROE) was 18.78% in 2023 and 4.99% in Q1 2024, annualized at 17.06% [3] Loan and Deposit Growth - Public loans grew by 32.02% in 2023 and 12.8% in Q1 2024, while retail loans increased by 15.27% and 0.81% respectively [3] - Total deposits rose by 19.22% in 2023 and 6.94% in Q1 2024, with personal time deposits growing by 35.23% and 12.73% [3] Intermediary Business and Investment Income - Non-interest income changed by 8.76% in 2023 and -1.18% in Q1 2024, with intermediary business income showing a recovery in Q1 2024 [3] - Investment income growth slowed, with a year-on-year increase of 23.45% in 2023 and 3.93% in Q1 2024 [3] Asset Quality and Provisions - The bank's provision coverage ratio was 503.81%, maintaining a leading position in the industry [3] - The bank's asset quality is expected to remain strong, supported by a favorable credit environment and effective risk management [3] Investment Outlook - The bank is well-positioned to benefit from the Chengdu-Chongqing economic circle strategy, with significant growth potential in its business operations [3] - The projected book value per share (BVPS) for 2024-2026 is 19.48, 22.15, and 25.28 yuan, respectively, with corresponding price-to-book (PB) ratios of 0.76X, 0.67X, and 0.59X [3]