Suzhou Rural Commercial Bank(SH:603323) Guotai Junan Securities·2024-04-29 08:32Investment Rating - The investment rating for the company is "Buy" with a target price of 6.02, maintaining the previous rating of "Buy" [2][5]. Core Insights - The report highlights that Su Nong Bank has maintained high profit growth and improved asset quality, with significant contributions from non-interest income. The bank's Q1 revenue and net profit both showed double-digit growth, outperforming comparable peers [2][5]. Financial Performance Summary - For 2023, the bank's revenue is projected to be 4,046 million, with a net profit of 1,743 million, reflecting a year-on-year growth of 16.04% [12]. - The bank's EPS for 2023 is estimated at 0.97, with projections of 1.09 for 2024 [12]. - The net interest income for 2023 is expected to be 2,966 million, with a growth rate of -5.48% [12]. - The bank's total loans are projected to reach 122,291 million in 2023, with a loan-to-deposit ratio of 77.60% [12]. Asset Quality and Risk Management - The non-performing loan (NPL) ratio has remained stable at 0.91% for three consecutive quarters, with a coverage ratio of 453% [12]. - The bank's asset quality is described as robust, with improvements in provisioning coverage and a decrease in the attention rate of loans [2][12]. Growth Projections - The report forecasts a net profit growth rate of 12.7% for 2024, 11.48% for 2025, and 10.95% for 2026, indicating a steady growth trajectory [2][12]. - The bank's strategy includes a focus on corporate loans, which have shown a year-on-year growth of 18.3% in Q1, contributing significantly to overall loan growth [2][12]. Market Position - Su Nong Bank is positioned as a leading rural commercial bank in China, established in 2004, and primarily engages in commercial banking activities [5]. - The bank's market capitalization is reported at 8,547 million, with a current stock price of 4.74 [7].