Changshu Bank(601128) 华创证券·2024-04-30 09:32Investment Rating - The report maintains a "Recommendation" rating for Changshu Bank (601128) with a target price of 8.60 CNY, while the current price is 7.50 CNY [1]. Core Views - Changshu Bank's Q1 2024 performance is strong, with operating income reaching 2.7 billion CNY, a year-on-year increase of 12.01%, and net profit attributable to shareholders of 950 million CNY, up 19.8% year-on-year [2]. - The bank's growth is attributed to rapid scale expansion and a rebound in net interest margin, with a measured net interest margin of 2.77%, up 25 basis points from the previous quarter [2]. - The bank's asset quality remains stable, with a slight increase in non-performing loan ratio to 0.76%, while the provision coverage ratio improved to 539% [2]. Financial Performance Summary - Operating Income: 2023A: 9,869 million CNY; 2024E: 10,993 million CNY; 2025E: 12,353 million CNY; 2026E: 14,047 million CNY [3]. - Net Profit: 2023A: 3,282 million CNY; 2024E: 3,848 million CNY; 2025E: 4,613 million CNY; 2026E: 5,508 million CNY [3]. - Earnings Per Share (EPS): 2023: 1.20 CNY; 2024E: 1.40 CNY; 2025E: 1.68 CNY; 2026E: 2.01 CNY [3]. - Price-to-Earnings Ratio (PE): 2024E: 5.36; 2025E: 4.46; 2026E: 3.73 [3]. - Price-to-Book Ratio (PB): 2024E: 0.74; 2025E: 0.64; 2026E: 0.56 [3]. Loan and Asset Quality - Total Loans: 2023: 222,440 million CNY; 2024E: 255,806 million CNY; 2025E: 294,177 million CNY; 2026E: 338,304 million CNY [7]. - Non-Performing Loan Ratio: 2023: 0.75%; 2024E: 0.75% [7]. - Provision Coverage Ratio: 2023: 538.70%; 2024E: 510.70% [7]. Investment Outlook - The report emphasizes Changshu Bank's strong performance and its leading position in micro-lending, projecting revenue growth rates of 11.4%, 12.4%, and 13.7% for 2024-2026, respectively [2][3].