BANK OF CHANGSHA(SH:601577) KAIYUAN SECURITIES·2024-04-28 15:00Investment Rating - The investment rating for Changsha Bank is "Buy" (maintained) [2] Core Views - Changsha Bank's revenue growth remains stable, with a year-on-year increase of 8.46% in 2023, reaching 24.803 billion yuan. The bank's profitability is improving steadily, with net profit for 2023 at 7.463 billion yuan, reflecting a year-on-year growth of 9.57% [4][5] - The bank's total assets reached 1.02 trillion yuan by the end of 2023, marking a year-on-year growth of 12.74%. The loan balance also saw a significant increase of 14.64% year-on-year, totaling 488.4 billion yuan [5][6] - The bank's net interest margin (NIM) was 2.31% in 2023, showing a slight decline but remaining at a relatively high level. The cost of deposits decreased by 8 basis points to 2.20%, which helped mitigate the pressure on net interest margin [5][6] Summary by Sections Financial Performance - In 2023, Changsha Bank achieved a revenue of 24.803 billion yuan, with a year-on-year growth of 8.46%. The net profit attributable to shareholders was 7.463 billion yuan, reflecting a growth of 9.57% [4][7] - The bank's PPOP (pre-provision operating profit) for Q4 2023 and Q1 2024 grew by 6.13% and 7.11% year-on-year, respectively [4][5] Asset Quality - The non-performing loan (NPL) ratio remained stable at 1.15% by the end of 2023, with a slight increase in the attention rate, indicating manageable asset quality [6][9] - The provision coverage ratio was 313.16% at the end of Q1 2024, showing a slight decrease but still indicating strong coverage [6][9] Growth Projections - The bank's net profit forecasts for 2024, 2025, and 2026 are 8.444 billion yuan, 9.540 billion yuan, and 11.467 billion yuan, respectively, with year-on-year growth rates of 13.14%, 12.99%, and 20.19% [4][7] - The projected price-to-book (PB) ratios for 2024, 2025, and 2026 are 0.4, 0.4, and 0.3, respectively, indicating potential undervaluation [4][7]