Changshu Bank(601128) 中国银河·2024-05-01 04:32Investment Rating - The report maintains a "Recommended" rating for Changshu Bank (601128) [1] Core Views - The company's revenue and net profit growth remain strong, with a year-on-year increase of 12.05% and 12.01% in 2023 and Q1 2024 respectively, while net profit attributable to shareholders grew by 19.6% and 19.8% [1] - The bank's non-interest income has shown significant improvement, with a year-on-year increase of 14.34% in 2023 and 70.9% in Q1 2024, driven by increased agency service fees and investment income [1] - Asset quality is excellent, with non-performing loan ratios at 0.75% and 0.76% as of the end of 2023 and March 2024, respectively, and a provision coverage ratio of 537.88% and 539.18% [1] Financial Performance Summary - In 2023, net interest income was CNY 8,501.34 million, with a projected increase to CNY 9,454.62 million in 2024, reflecting a growth rate of 19.60% [2] - The bank's total loans reached CNY 2,224.39 billion by the end of 2023, marking a 15% increase from 2022, with individual operating loans growing by 21.12% [1][2] - The net interest margin (NIM) for 2023 and Q1 2024 was 2.86% and 2.83%, respectively, showing a year-on-year decline of 16 basis points and 19 basis points, yet still leading the industry [1] Investment Recommendations - The bank's focus on supporting agriculture and small enterprises solidifies its competitive edge in microfinance, with significant growth potential in credit demand and a strong asset quality [1] - The report forecasts BVPS (Book Value Per Share) of CNY 10.19, 11.62, and 13.31 for 2024, 2025, and 2026, respectively, indicating a favorable outlook for future performance [1][2]