Introduction to this report:
The Bank of Suzhou announced today that the management has collectively increased its holdings, fully demonstrating its confidence in future development prospects and transferred to the first promotion portfolio. Maintain the target price of 9.21 yuan and maintain an increase in holdings rating.
Key points of investment:
Incident: Bank of Suzhou announced that a number of senior executives, including the chairman and bank president, intend to increase their holdings of the company by a total of no less than 3 million yuan from 2023/11/10-2023/12/29 with their own capital through centralized bidding.
The new management of the Bank of Suzhou arrived in September and now plans to collectively increase their holdings, fully demonstrating their confidence in the company's development prospects and recognition of investment value. Bank of Suzhou is expected to be proactive and reach a new level of development.
The Bank of Suzhou's financial performance is outstanding. In particular, its profit growth rate continues to rank among the highest. However, the current price is only 0.58 times PB corresponding to 2023, which is a serious mismatch. Considering that the Bank of Suzhou has obvious location advantages, stable asset quality, and a good balance between capital and growth, and the positive and promising position of the new management team after taking office, leading the Bank of Suzhou into a new stage of accelerated development, it is expected that the Bank of Suzhou's financial comparative advantage will expand further in the future, promoting valuation restoration. Based on this, the Bank of Suzhou was transferred to the first promotion portfolio.
Investment suggestions: Adjust the 2023-2025 net profit growth forecast to 21.1%, 20.4%, and 20.9%, corresponding to EPS to 1.26 (-0.01), 1.53, and 1.85 yuan/share, corresponding to BVPS to 10.76, 11.90 (-0.01), and 13.28 (-0.01) yuan/share, maintain the target price of 9.21 yuan, and maintain the increase rating.
Risk warning: Demand repair falls short of expectations.