Bank of Chengdu(SH:601838) ZHONGTAI SECURITIES·2024-04-26 07:00Investment Rating - The report maintains an "Accumulate" rating for the company with a market price of 14.81 [1] Core Views - The company's net profit grew by 12.8% in Q1 2024, indicating stable growth. The net interest income increased by 8.1% year-on-year, supported by improved cost control on the liability side, although overall revenue growth declined by 0.9 percentage points compared to Q4 of the previous year to 6.3% [3][8] - The asset quality has improved, with a non-performing loan (NPL) ratio of 0.66% in Q1 2024, down 2 basis points from the previous quarter. The annualized NPL net generation rate decreased by 43 basis points to -0.25% [4][28] - The company has a strong focus on infrastructure loans, which accounted for 55.1% of total new loans in 2023, while retail loans have also seen a slight increase [17][23] Financial Performance Summary - Revenue Forecasts: - 2022A: 20,240 million - 2023A: 21,701 million - 2024E: 22,957 million - 2025E: 24,313 million - 2026E: 26,377 million - Year-on-year growth rates are projected at 13.1%, 7.2%, 5.8%, 5.9%, and 8.5% respectively [1] - Net Profit Forecasts: - 2022A: 10,042 million - 2023A: 11,670 million - 2024E: 13,075 million - 2025E: 14,384 million - 2026E: 15,819 million - Year-on-year growth rates are projected at 28.2%, 16.2%, 12.0%, 10.0%, and 10.0% respectively [1] - Earnings Per Share (EPS): - 2022A: 2.69 - 2023A: 3.06 - 2024E: 3.43 - 2025E: 3.77 - 2026E: 4.15 [1] - Return on Equity (ROE): - 2022A: 19.83% - 2023A: 19.36% - 2024E: 18.73% - 2025E: 18.07% - 2026E: 17.46% [1] - Price-to-Earnings (P/E) Ratio: - 2022A: 5.51 - 2023A: 4.84 - 2024E: 4.32 - 2025E: 3.93 - 2026E: 3.57 [1] - Price-to-Book (P/B) Ratio: - 2022A: 1.00 - 2023A: 0.87 - 2024E: 0.76 - 2025E: 0.67 - 2026E: 0.59 [1] Asset Quality Summary - The NPL ratio has decreased to 0.66% in Q1 2024, with a high provision coverage ratio of 503.75%. The overdue rate has also declined to 0.80% at the end of 2023 [4][28]