Changshu Bank(601128) 国信证券·2024-05-05 02:00Investment Rating - The investment rating for Changshu Bank (601128.SH) is "Buy" [3] Core Views - The bank maintains strong performance with a year-on-year revenue growth of 12.01% and a net profit growth of 19.80% in Q1 2024, indicating consistent growth compared to the previous year [1] - The bank's asset quality remains excellent, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539%, which is among the highest in the listed banks [1] - The bank's focus on small and micro businesses provides resilience through economic cycles, and it is expected to continue outperforming its peers in revenue and net profit growth [1] Financial Performance Summary - In Q1 2024, the bank achieved a total revenue of 2.7 billion yuan and a net profit of 950 million yuan, with both figures showing strong year-on-year growth [1] - The total assets reached 364.7 billion yuan, with loans and deposits growing by 9.0% and 14.3% respectively since the beginning of the year [1] - The bank's net interest margin was reported at 2.83%, showing a slight year-on-year decrease of 19 basis points, but the decline is narrowing compared to previous quarters [1] Earnings Forecast and Financial Metrics - The forecast for net profit for 2024-2026 is 3.9 billion, 4.6 billion, and 5.6 billion yuan respectively, with corresponding growth rates of 19.0%, 17.5%, and 22.1% [2][4] - The diluted EPS for the same period is projected to be 1.42, 1.67, and 2.04 yuan, with PE ratios of 5.3, 4.5, and 3.7 times [2][4] - The bank's return on assets (ROA) and return on equity (ROE) are expected to improve, reaching 1.16% and 15.6% in 2024 respectively [4]