Investment Rating - The report maintains a "Buy" rating for Nanjing Bank, with a target price of 16.26 CNY per share, indicating a potential upside of 54% from the current price [3]. Core Views - Nanjing Bank is expected to experience a strong recovery in profitability, supported by both fundamental improvements and favorable trading conditions. The bank's return on equity (ROE) is projected to enter an upward trajectory, with net profit growth forecasted at 8.08% for 2025, 9.54% for 2026, and 8.86% for 2027 [3][9]. Summary by Sections 1. Capital Injection and Operational Improvement - Nanjing Bank's performance has shown a U-shaped recovery since 2024, with revenue and net profit growth rates improving significantly compared to 2023 [16]. - The bank's non-performing loan (NPL) ratio was at a low of 0.83% as of Q4 2024, down 7 basis points from the previous year [16]. - The bank's cost-to-income ratio has improved, standing at 23.3% for the first three quarters of 2025, a decrease of 2 percentage points year-on-year [16][25]. 2. High Dividend Yield and Strong Trading Support - Nanjing Bank's dividend yield is projected to be 5.0% for 2025, which is 56 basis points higher than the average for city commercial banks [2][45]. - The bank's price-to-book (PB) ratio is 0.72x, lower than other quality regional city commercial banks, indicating potential for valuation recovery [2][45]. - The ownership structure is favorable, with major shareholders having room to increase their holdings, which supports trading strength [2][47]. 3. Profitability Forecast and Valuation - The bank's net profit is expected to grow at rates of 8.08%, 9.54%, and 8.86% for the years 2025, 2026, and 2027, respectively, with corresponding book values per share of 14.64, 16.26, and 17.69 CNY [3][11]. - The current price corresponds to a PB valuation of 0.72, 0.65, and 0.60 for the years 2025 to 2027, indicating a favorable valuation compared to peers [3][11]. 4. Management and Strategic Direction - The management team, led by Chairman Xie Ning and President Zhu Gang, is noted for their strong capabilities and commitment to enhancing operational performance and value creation [41]. - The bank's strategic initiatives, including a three-year plan to double effective customer numbers, are expected to drive future growth [29][41].

Investment Rating - The report maintains a "Buy" rating for Nanjing Bank, with a target price of 16.26 CNY per share, indicating a potential upside of 54% from the current price [3]. Core Insights - Nanjing Bank is expected to experience a strong profit growth rate, with projected net profit growth of 8.08% in 2025, 9.54% in 2026, and 8.86% in 2027, supported by a favorable dividend yield and a strong shareholder base [3][11]. - The bank's capital replenishment is expected to enhance operational management, leading to an improvement in Return on Equity (ROE) [3][25]. - The bank's dividend yield is projected to be 5.0% for 2025, which is 56 basis points higher than the average for city commercial banks, with an expected dynamic dividend yield of approximately 5.5% in 2026 [2][45]. Summary by Sections 1. Capital Injection and Operational Improvement - Nanjing Bank's performance has shown a U-shaped recovery since 2024, with revenue and net profit growth rates improving significantly compared to 2023 [16]. - The bank's non-performing loan ratio was at a low of 0.83% as of Q4 2025, reflecting effective cost control [16][24]. - The management team, led by experienced executives, is focused on enhancing operational performance and value creation [41]. 2. High Dividend Valuation and Strong Trading Support - The bank's stock is undervalued compared to other quality city commercial banks, with a Price-to-Book (PB) ratio of 0.72x, lower than peers like Ningbo Bank and Hangzhou Bank [2][45]. - Nanjing Bank has a low public fund holding ratio of 1.0%, which is below the average for city commercial banks, indicating a favorable trading structure [2][47]. - Major shareholders have been actively increasing their stakes, providing additional support for the stock price [2][47]. 3. Profit Forecast and Valuation - The bank's net profit is projected to grow at a compound annual growth rate (CAGR) of 8.08% from 2025 to 2027, with corresponding Book Value per Share (BPS) estimates of 14.64 CNY, 16.26 CNY, and 17.69 CNY [3][11]. - The report anticipates that the bank's valuation will return to the top tier of city commercial banks, driven by both fundamental and trading factors [3][9].