BANK OF SUZHOU(SZ:002966) ZHONGTAI SECURITIES·2024-04-30 02:12Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has shown steady growth in net profit, achieving a 12.3% year-on-year increase in Q1 2024, supported by a favorable bond market that boosted non-interest income [3][8] - The asset quality remains excellent, with a non-performing loan ratio of 0.84% in Q1 2024, indicating stability [26] - The company has adjusted its revenue and profit forecasts for 2024 and 2025, reflecting a more conservative outlook on credit growth and profitability [5] Financial Performance Summary - Revenue and Profit Forecasts: - 2022A: Revenue of 12,045 million, Net Profit of 3,918 million - 2023A: Revenue of 11,697 million, Net Profit of 4,601 million - 2024E: Revenue of 11,811 million, Net Profit of 5,153 million - 2025E: Revenue of 12,645 million, Net Profit of 5,668 million - 2026E: Revenue of 13,280 million, Net Profit of 6,238 million [1] - Earnings Per Share (EPS): - 2022A: 1.07 - 2023A: 1.25 - 2024E: 1.41 - 2025E: 1.55 - 2026E: 1.70 [1] - Price-to-Earnings (P/E) Ratio: - 2022A: 6.67 - 2023A: 5.68 - 2024E: 5.07 - 2025E: 4.61 - 2026E: 4.19 [1] Asset Quality and Loan Performance - The company has maintained a low non-performing loan ratio of 0.84% and a high provision coverage ratio of approximately 491.65% [26] - In Q1 2024, the company achieved a significant increase in loan disbursement, with a quarterly increase of 58.2% year-on-year [18][20] - The structure of loans has shifted towards corporate lending, with corporate loans accounting for 83.9% of new loans in 2023 [20] Deposit and Funding Structure - The company has seen a strong increase in deposits, with a total of 472.6 billion added in Q1 2024, representing a 28.7% increase year-on-year [18] - The trend towards term deposits continues, with term deposits increasing by 25.2% year-on-year, making up 70.4% of total deposits [23] Non-Interest Income - Non-interest income grew by 5.4% year-on-year in Q1 2024, primarily driven by an increase in trading income [24]