Group 1: Urban Development and Integration - The Xi'an metropolitan area has been focusing on modern urban development since its approval in February 2022, aiming for coordinated growth between the central city and surrounding areas through innovative mechanisms [1] - A provincial-level office for integrated development has been established, along with a coordination group for land and spatial planning, to ensure a structured approach to urban integration [1] Group 2: Transportation Infrastructure - The metropolitan area is enhancing its transportation system by developing a multi-layered rail transit plan and integrating various transport networks, including air, rail, and road [2] - A comprehensive transportation network is being constructed to facilitate efficient commuting within the metropolitan area, with a focus on creating a seamless connection to national and international transport systems [2] Group 3: Innovation and Industry Collaboration - The region is leveraging its status as a technology innovation center to create a collaborative innovation network that connects Xi'an with surrounding cities, promoting joint research and development initiatives [3] - Key industries such as renewable energy and biotechnology are being targeted for development, with major companies expanding their operations within the metropolitan area [3] Group 4: Environmental Cooperation - A framework for joint air pollution control has been established among the cities in the metropolitan area, focusing on collaborative efforts to improve air quality [4] - Water pollution control measures are being implemented, with agreements in place for coordinated responses to environmental incidents, highlighting a commitment to sustainable development [4]

Investment Rating - The report maintains a "Recommended" rating for Chongqing Bank, with a target price of 12.09 CNY / 9.33 HKD, indicating an expected performance that exceeds the benchmark index by 10%-20% over the next six months [4][8]. Core Insights - Chongqing Bank's revenue and profit continue to accelerate, with a 7.0% year-on-year increase in revenue to 7.659 billion CNY and a 5.39% increase in net profit attributable to shareholders to 3.190 billion CNY in the first half of 2025 [2][4]. - The bank's non-performing loan (NPL) ratio decreased by 4 basis points to 1.17%, while the provision coverage ratio increased by 0.7 percentage points to 248.3%, indicating improved asset quality [2][4]. Financial Performance Summary - In Q2 2025, Chongqing Bank achieved a revenue of 4.078 billion CNY, representing an 8.54% year-on-year growth, driven by a significant increase in non-interest income, which grew over 70% year-on-year [7][8]. - The bank's interest margin decreased in Q2 2025, with an annualized net interest margin of 1.23%, down 29 basis points from the previous quarter [7][8]. - The bank's total loan balance is projected to grow significantly, with a year-on-year increase of 21.9% in interest-earning assets, supported by strong demand for corporate loans in the Sichuan-Chongqing region [7][8]. Asset Quality and Risk Management - The report highlights that the asset quality of Chongqing Bank continues to improve, with a decrease in the NPL ratio and a stable provision coverage ratio, indicating effective risk management practices [7][8]. - The bank's NPL ratio for corporate loans improved, while the personal loan NPL ratio saw a slight increase, reflecting varying performance across different loan segments [7][8]. Future Projections - The report forecasts revenue growth rates of 5.2%, 5.8%, and 5.3% for 2025E, 2026E, and 2027E respectively, with net profit growth rates of 5.8%, 5.7%, and 5.0% for the same periods [9][10]. - The target price corresponds to a projected price-to-book (PB) ratio of 0.75X for 2025E, which is slightly above the historical average PB of 0.65X over the past five years [8][9].