Ping An Securities: Changshu Bank's mid-term dividend increase, focus on the convertible bond process, maintain a "strongly recommended" rating.

Ping An Securities research report pointed out that Changshu Bank achieved a net profit attributable to shareholders of 1.97 billion yuan in the first half of 2025, an increase of 13.5% year-on-year. As of the end of June 2025, Changshu Bank's total assets reached 401.2 billion yuan, an increase of 9.45% from the beginning of the year, with loans increasing by 4.4% and deposits increasing by 8.46% from the beginning of the year. According to the company's 2025 interim profit distribution plan, the interim dividend ratio is 25.27%. The focus is on changes in retail and small and micro businesses, with the level of interim dividends raised. The company has always adhered to the market positioning of "three agriculture and two smalls," continuously pursuing the path of differentiated development through deepening inclusive finance, sinking customer groups, and expanding in different locations. Retail and small and micro businesses are steadily developing, and are expected to continue to benefit from the continuous recovery of demand from small and micro enterprises and retail customers in the future. The interim dividend rate reached 25.27% in 2025, a significant increase from previous years. In addition, as of August 12th, the company's convertible bond balance reached 6 billion yuan, and based on the closing price on August 12th, it has exceeded the conversion price, if successfully converted, the company's capital strength is expected to further increase. The bank maintains its profit forecast for the company, and is optimistic about the development space of the company's small and micro businesses in the long term, maintaining a "strongly recommended" rating.