Gelonghui, December 19 | The HTSC Research Report indicates that the Bank of Chengdu (601838.SH) has announced that it has triggered the conditional redemption clause of the "Chengyin Convertible Bonds." Considering the newly generated shares from the forced redemption of Convertible Bonds, the forecast for EPS from 2024 to 2026 is 3.08/3.40/3.77 yuan, with a BVPS forecast of 20.25 yuan for 2025, corresponding to a PB of 0.81 times. The average consensus forecast PB for comparable companies in 2025 is 0.60 times according to Wind. With the expiration of long-term time deposit contracts and a reduction in the deposit benchmark interest rate, the cost on the liabilities side is expected to continue to improve, offsetting the downward pricing pressure on the Assets side. By the end of Q3 2024, the company's non-performing loan ratio is 0.66%, the lowest level among listed banks; the provision coverage ratio is 497%, ranking fourth among listed banks, and the replacement of hidden debts is expected to improve the asset quality of politically-related loans. The company's fundamentals remain at the top tier among peers, with growth rates leading among listed banks, and thus it should enjoy a valuation premium, giving a target PB of 1.00 times for 2025 (previously 0.95 times), a target price of 20.25 yuan (previously 21.19 yuan), and maintaining a "Buy" rating.