Changshu Bank(601128) 海通证券·2024-05-17 01:02Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The report indicates that the company continues to show strong revenue and profit growth, with Q1 2024 revenue increasing by 12.01% year-on-year and net profit rising by 19.80% [3][4] - The asset quality remains stable, with a non-performing loan ratio of 0.76% and a provision coverage ratio of 539.18% [3][4] - The company is experiencing a shift in corporate deposits from fixed to demand, with demand deposits increasing to 34.9 billion yuan in Q1 2024 from 28.3 billion yuan at the end of 2023 [3] Summary by Sections Financial Performance - In Q1 2024, the company's revenue reached 9,870 million yuan, with a year-on-year growth of 12.05% [5] - The net profit for 2024 is projected to be 3,709 million yuan, reflecting a growth rate of 13.02% [5] - The average return on equity (ROE) is expected to be 14.18% in 2024 [5] Valuation Metrics - The report estimates the EPS for 2024-2026 to be 1.35, 1.52, and 1.72 yuan respectively, with corresponding P/E ratios of 7.47-8.18 times [4][5] - The reasonable value range for the company is set between 10.09 and 11.04 yuan based on DDM and PB-ROE models [4] Market Comparison - The company is compared with peers, showing a PB ratio of 1.00 times for 2024E, while comparable companies have an average PB of 0.51 times [6] - The report highlights that the company's performance is expected to outperform the market benchmark by over 10% [17]