Summary of Conference Call Records Industry or Company Involved - The discussion primarily revolves around the banking sector, specifically focusing on various banks such as Changshu Bank, Ningbo Bank, Hangzhou Bank, Nanjing Bank, Qilu Bank, Bank of Communications, and Postal Savings Bank. Core Points and Arguments 1. **Public Fund Allocation to Bank Stocks** Public funds are restructuring their allocation to bank stocks, moving from long-term under-allocation to a certain degree of correction. This is influenced by short-term market risk appetite and mid-term upward trends in allocation [1][3][4]. 2. **Performance of Quality Bank Stocks** Quality bank stocks with pro-cyclical labels, such as Changshu Bank and Ningbo Bank, have faced valuation pressure due to economic downturn expectations. However, potential policy support for retail loan asset quality could lead to significant valuation recovery [1][6][8]. 3. **Changshu Bank's Performance** Changshu Bank reported good performance in its mid-year report, with a profit growth rate of 16.6%. The management expressed optimism about future performance, and the dividend payout ratio was increased from 20% to 25%, enhancing its valuation [1][8][10]. 4. **Ningbo Bank's Outlook** Ningbo Bank's retail loan net generation rate has fluctuated, impacting its valuation. However, with industry-wide improvements in retail risk indicators and expected increases in dividend payouts, it also has recovery potential [1][8][13]. 5. **Impact of Convertible Bonds on City Commercial Banks** City commercial banks like Hangzhou Bank and Nanjing Bank have been under pressure from convertible bonds but saw significant institutional recognition and stock price increases in Q2. However, their stock prices are no longer at low levels [1][9][11]. 6. **Qilu Bank's Growth Potential** Qilu Bank has been lagging in performance but has recently absorbed convertible bond pressures. With a total asset size of 750 billion RMB and a strong growth outlook, it is expected to recover significantly [1][10][14]. 7. **Nanjing Bank's Shareholder Changes** Nanjing Bank completed the digestion of convertible bonds and has seen increased clarity in its dividend yield and ROE calculations. The major shareholders have increased their stakes, indicating potential for further capital support [1][11][12]. 8. **Underperforming State-Owned Banks** Bank of Communications and Postal Savings Bank are identified as underperforming among state-owned banks. Bank of Communications has a higher expected dividend yield compared to its peers, while Postal Savings Bank is expected to benefit from favorable consumer loan policies [1][13][14]. Other Important but Possibly Overlooked Content 1. **Market Sentiment and Discussion Trends** There has been a notable increase in market attention and discussion regarding bank stocks, particularly those that are perceived to be undervalued or have lagged in performance over the past two years [2][4]. 2. **Investment Strategy Recommendations** The report suggests focusing on three categories of bank stocks for potential recovery: pro-cyclical banks like Changshu and Ningbo, city commercial banks that have absorbed convertible bond pressures, and state-owned banks that are underperforming due to various factors [1][14].

Investment Rating - The report maintains a "Positive" investment rating for the banking sector, particularly favoring high-quality city commercial banks [11]. Core Insights - In the current macroeconomic environment, government leverage expansion is the clearest direction for bank operations, with state-owned banks and city commercial banks focusing on government-related business as a core strategy for balance sheet expansion [2][7]. - Leading city commercial banks are accelerating their market share acquisition, with their performance growth consistently outpacing the banking industry, driven primarily by relatively high-speed balance sheet expansion [6][10]. - The asset quality of city commercial banks, primarily engaged in government-related business, is currently the most stable, with expectations for a decline in the net generation rate of non-performing loans this year [2][9]. Summary by Sections Macroeconomic Environment - The current macroeconomic environment favors government-related business, with city commercial banks focusing on local government, urban construction, and local state-owned enterprises [7]. - The demand for government-led financing continues to expand in key economic regions, such as the Chengdu-Chongqing area and Shandong province, despite concerns about export pressures in the Yangtze River Delta [7][8]. Competitive Landscape - The competitive dynamics between state-owned banks and leading city commercial banks are evolving, with state-owned banks experiencing a significant increase in credit market share due to macro policy guidance [8]. - Regulatory measures are being implemented to protect the net interest margins of state-owned banks, indirectly slowing their loan issuance and creating a more favorable competitive environment for city commercial banks [8][9]. Asset Quality and Loan Performance - City commercial banks have maintained low non-performing loan rates due to their focus on government-related loans, which have seen reduced risk following recent debt restructuring efforts [9]. - The tightening of risk control and loan issuance in retail banking is expected to lead to a slight decrease in the net generation rate of non-performing loans this year [9]. Investment Outlook - The report is optimistic about city commercial banks becoming the core focus for institutional investors in the banking sector, with expectations for their valuations to rise above 1x PB [10]. - Specific banks, such as Hangzhou Bank, are anticipated to lead in valuation increases due to their regional economic strength, asset quality, and performance growth [10].

丨证券研究报告丨 行业研究丨专题报告丨银行 [Table_Title] 哪类优质银行成分股还在低位？ ——银行股配置重构系列二 报告要点 [Table_Summary] 我们从方向上看好主动型基金逐步修正长期以来对银行股的严重欠配。在基本面维持稳定的前 提下，资金面上的红利高股息逻辑、被动型基金扩容逻辑、主动型基金增配逻辑将共同推动银 行股低估值持续修复。新的逻辑下市场将在指数成分股中基于长期质地/业绩比较优势/边际变 化等因素优选个股，除了我们重点推荐的白马权重股和业绩领跑的城商行以外，部分前期受到 各种因素压制的优质银行股也值得关注，主要三类银行：1）前期受可转债压制的优质城商行； 2）顺周期标签鲜明的优质银行股；3）受短期因素扰动的低估值国有大行。 research.95579.com 分析师及联系人 [Table_Author] 马祥云 盛悦菲 SAC：S0490521120002 SAC：S0490524070002 SFC：BUT916 请阅读最后评级说明和重要声明 %% %% %% %% [Table_Title 哪类优质银行成分股还在低位？ 2] ——银行股配置重构系列二 [Table_Sum ...

Investment Rating - The report maintains a "Positive" investment rating for the banking sector [10] Core Insights - The report highlights a positive outlook for active funds gradually correcting the long-standing underweight in bank stocks. With stable fundamentals, the combination of high dividend logic, expansion of passive funds, and increased allocation by active funds is expected to drive the continuous recovery of undervalued bank stocks [2][6] - The market will begin to focus on quality bank stocks at low valuations, particularly those that have been suppressed by various factors. Three main categories of banks are identified for potential investment: 1) Quality city commercial banks previously pressured by convertible bonds; 2) Quality banks with clear pro-cyclical labels; 3) State-owned banks with low valuations affected by short-term factors [2][6] Summary by Sections Category 1: Quality City Commercial Banks - Notable examples include Hangzhou Bank and Nanjing Bank, which have lagged in performance despite strong fundamentals. Nanjing Bank's stock price has reached the forced redemption price of its convertible bonds, with a static PB (LF) valuation of only 0.73x, the lowest among quality banks in the Yangtze River Delta. Hangzhou Bank, with a PB (LF) valuation of 0.85x, is recognized as a leader in asset quality and profit growth, indicating significant undervaluation [7] Category 2: Pro-Cyclical Quality Banks - Examples include Changshu Bank and Ningbo Bank, which have faced valuation pressure due to economic downturn expectations. Despite a 44% and 16% contraction in PB valuations for Ningbo Bank and Changshu Bank respectively, both banks maintain strong performance metrics. If retail loan asset quality stabilizes, these banks are expected to see significant valuation recovery [8] Category 3: Low-Valuation State-Owned Banks - Traffic Bank and Postal Savings Bank are highlighted as state-owned banks with lagging performance and low PB valuations. Traffic Bank's stock has been stagnant due to concerns over fiscal injections diluting dividend yields, yet it is projected to maintain positive growth in 2025. Postal Savings Bank faces similar pressures but could benefit from economic recovery and improved asset quality [8]