Investment Rating - The report maintains a "Buy" rating for Changshu Bank (601128.SH) with a current price of 7.80 CNY [1]. Core Insights - Changshu Bank reported a revenue of 6.1 billion CNY for the first half of 2025, representing a year-on-year growth of 10.1%, and a net profit attributable to shareholders of 2 billion CNY, up 13.5% year-on-year [4][5]. - The bank's return on average equity (ROAE) stands at 13.34%, reflecting a slight increase of 0.06 percentage points year-on-year [4]. - The bank's non-interest income grew significantly by 57.3% year-on-year, contributing to the overall revenue growth [5][9]. Summary by Sections Financial Performance - In the first half of 2025, the bank's revenue, pre-provision profit, and net profit attributable to shareholders grew by 10.1%, 12.1%, and 13.5% respectively, with slight changes compared to the first quarter [5]. - The bank's net interest income and non-interest income growth rates were 0.8% and 57.3% year-on-year, indicating a strong performance in non-interest income [5]. Asset and Loan Growth - As of the end of the second quarter of 2025, the bank's interest-earning assets and loans grew by 11.4% and 5.2% year-on-year, respectively [6]. - The bank's loan growth was supported by financial investments and interbank assets, with a total loan addition of 106 billion CNY in the first half of 2025 [6]. Deposit and Funding - The bank's interest-bearing liabilities and deposits grew by 9.4% and 9.9% year-on-year, with a total deposit addition of 242 billion CNY in the first half of 2025 [8]. - The bank has been actively managing its liabilities by adjusting deposit rates to mitigate the trend of increasing fixed-term deposits [8]. Capital Adequacy and Dividends - As of the end of the second quarter of 2025, the bank's core tier 1 capital adequacy ratio was 10.7%, with a proposed cash dividend of 497 million CNY, representing a payout ratio of 25.3% [11]. - The bank has 6 billion CNY of convertible bonds pending conversion, which is expected to support future capital needs [11]. Earnings Forecast and Valuation - The bank's earnings per share (EPS) forecasts for 2025, 2026, and 2027 are 1.28 CNY, 1.42 CNY, and 1.50 CNY, respectively, with corresponding price-to-earnings (P/E) ratios of 6.09, 5.50, and 5.19 [12][13].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company demonstrated strong revenue and profit resilience, with a year-on-year revenue increase of 10.1% to 6.06 billion yuan and a net profit increase of 13.5% to 1.97 billion yuan in the first half of 2025 [3][4] - The return on average equity (ROAE) improved to 13.3%, up by 0.05 percentage points year-on-year [3][4] - The bank's asset quality remains stable, with a non-performing loan (NPL) ratio of 0.76% and a provision coverage ratio of 489.5% [7][9] Revenue and Profitability - The company's revenue and net profit growth rates for the first half of 2025 were 10.1% and 13.5%, respectively, showing resilience in performance [4] - The second quarter of 2025 saw a revenue growth of 10.2% and a net profit growth of 13.2% compared to the same period last year [4] - The bank's total assets and loans grew by 9.2% and 5.2% year-on-year, respectively, indicating a steady expansion [4][5] Asset and Liability Management - The bank's total liabilities and deposits grew by 9% and 9.9% year-on-year, respectively, with a notable increase in deposit growth in the second quarter [5] - The loan-to-deposit growth rate difference widened to 4.7 percentage points, indicating a good match in growth between loans and deposits [5] Interest Margin and Cost Control - The report anticipates a narrowing of the interest margin decline due to effective cost control on liabilities and adjustments in deposit rates [6] - The bank has adjusted its deposit rates multiple times this year, which is expected to gradually alleviate the trend towards longer-term deposits [5][6] Capital Adequacy and Future Growth - The company has a strong capital replenishment capability, supported by a 6 billion yuan convertible bond that is expected to convert favorably [8] - The bank's earnings growth forecast for 2025-2027 is maintained at 11.4%, 10.7%, and 6%, respectively, with adjusted EPS estimates of 1.28, 1.42, and 1.50 yuan [9][10]

Core Viewpoint - Changshu Bank reported strong financial performance for the first half of 2025, with significant year-on-year growth in both revenue and net profit, indicating resilience in its operations [1][2]. Financial Performance - The bank achieved a revenue of 6.06 billion yuan, representing a year-on-year increase of 10.1%, and a net profit attributable to the parent company of 1.97 billion yuan, up 13.5% year-on-year [1][2]. - The weighted average return on equity (ROAE) was 13.3%, an increase of 0.05 percentage points compared to the previous year [1]. Revenue and Profit Growth - Revenue and net profit maintained double-digit growth, with year-on-year growth rates of 10.1% and 13.5%, respectively, showing slight changes from the first quarter of 2025 [2]. - In the second quarter of 2025, revenue and net profit growth rates were 10.2% and 13.2%, respectively, indicating stable performance [2]. Asset and Loan Growth - As of the end of the second quarter of 2025, total assets and loans grew by 9.2% and 5.2% year-on-year, respectively, with a slight increase in asset growth compared to the previous quarter [2][3]. - New loans in the second quarter amounted to approximately 1.8 billion yuan, a decrease of 1.9 billion yuan year-on-year, continuing a trend of reduced loan issuance [2]. Deposit Growth - Deposit growth accelerated, with total liabilities and deposits increasing by 9% and 9.9% year-on-year, respectively, showing improved growth rates compared to the previous quarter [3]. - The bank added 1.7 billion yuan in deposits during the second quarter, significantly higher than the previous year due to a low base effect [3]. Interest Margin and Cost Control - The bank is expected to see a narrowing of interest margin declines due to effective cost control measures on liabilities, despite a downward trend in loan rates [3][4]. - Recent adjustments to deposit rates have begun to show immediate effects, with a focus on reducing funding costs [4]. Asset Quality - The non-performing loan (NPL) ratio remained low at 0.76%, unchanged from the previous quarter, indicating stable asset quality [4]. - The provision coverage ratio was 489.5%, reflecting strong risk mitigation capabilities [4]. Capital and Growth Potential - The bank has a strong internal capital replenishment capability, supported by the conversion of convertible bonds, which provides a solid foundation for future growth [5]. - The bank's unique business model and focus on small and micro enterprises position it well for continued growth in the retail sector [5][6]. Profit Forecast and Valuation - The bank's projected net profit growth rates for 2025-2027 are 11.4%, 10.7%, and 6%, with adjusted earnings per share (EPS) forecasts of 1.28, 1.42, and 1.5 yuan, respectively [6]. - Current price-to-book (PB) and price-to-earnings (PE) ratios indicate attractive valuation levels, supporting a "buy" rating [6].

Core Viewpoint - Chengdu Bank focuses on its core responsibilities and explores a business model that aligns with the development rules of urban commercial banks, emphasizing clarity in its strategic direction and reducing internal competition that hinders value creation [1][2]. Financial Performance - As of the end of 2024, Chengdu Bank's total assets exceeded 1.25 trillion yuan, with a year-on-year revenue growth of 5.89% to 22.982 billion yuan and a net profit increase of 10.17% to 12.858 billion yuan [4][5]. - The bank's non-performing loan ratio decreased to 0.66%, marking a nine-year decline and maintaining a leading position in the industry [5]. Business Strategy - Chengdu Bank is committed to a balanced approach between quality and efficiency, risk and return, and total volume and structure, continuing its trend of steady progress and quality improvement [4]. - The bank is actively integrating into national strategies and regional economic development, focusing on key projects and industrial upgrades to support the Chengdu-Chongqing economic circle [12]. Transformation Initiatives - The bank is pursuing three major transformations: large retail, digitalization, and precision management, aiming to create a diverse business ecosystem and enhance its management system [7][8]. - In large retail, the bank expanded its customer base to over 10 million, achieving a record increase in savings deposits of 84.3 billion yuan [8]. - Digital transformation efforts include the implementation of a management platform for corporate clients and the use of robotic process automation to enhance operational efficiency [8][9]. Regional Economic Integration - Chengdu Bank plays a crucial role in regional financial center development, leveraging its local presence to support the economic growth of the Chengdu and Chengdu-Chongqing areas [11][12]. - The bank has provided financial support for significant projects in urban construction and major industries, enhancing its asset quality and service capabilities [12]. Cross-Border Financial Services - The bank supports the stable operation of the China-Europe Railway Express and promotes its unique cross-border financial service brand, "Rongyi Hui," to enhance transaction efficiency for enterprises [13]. - By the end of 2024, the bank's "Free Trade通" financial services had supported 101 enterprises in cross-border transactions totaling 569 million USD [13].