Changshu Bank(601128) 申万宏源·2024-04-30 14:02Investment Rating - The report maintains a "Buy" rating for Changshu Bank [3][7][12] Core Views - Changshu Bank's Q1 2024 results demonstrate strong revenue growth and profitability, with a revenue of 2.7 billion yuan, up 12.0% year-on-year, and a net profit of 952 million yuan, up 19.8% year-on-year [3][6][12] - The bank's annualized ROE increased by 0.9 percentage points to 14.7%, indicating a solid growth trajectory [3][6] - The bank's asset quality remains strong, with a slight increase in the non-performing loan (NPL) ratio to 0.76% and a provision coverage ratio of 539% [3][7][12] Summary by Sections Market Data - Closing price: 7.5 yuan - Market capitalization: 19,825 million yuan - Price-to-book ratio: 0.8 [3] Financial Performance - Q1 2024 revenue: 2.7 billion yuan, up 12.0% YoY - Q1 2024 net profit: 952 million yuan, up 19.8% YoY - Q1 2024 NPL ratio: 0.76%, up 1 basis point from the beginning of the year - Provision coverage ratio: 539%, up 1.3 percentage points from the beginning of the year [3][6][12] Growth Drivers - Interest income increased by 5.6% YoY, with a net interest margin of 2.8% in Q1 2024, only slightly down from the previous year [3][7] - Non-interest income surged by 71% YoY, contributing significantly to revenue growth [3][6] - Loan growth maintained at approximately 15% YoY, with deposits growing at 18% YoY, indicating a balanced growth strategy [3][6][12] Future Outlook - The bank is expected to continue its strong performance with projected net profit growth rates of 17.3%, 17.6%, and 18.7% for 2024-2026 [7][12] - The current stock price corresponds to a 2024 price-to-book ratio of 0.72, supporting the "Buy" rating [7][12]