Luzhou Bank Co Ltd (1983.HK) Q1 2024 Earnings Report

Luzhou Bank reported a strong QQ1 2024 top-line with revenue of 1,012.713 million CNY, and a gross profit equal to revenue, yielding a gross margin of 100%. Operating income reached 419.489 million CNY, delivering an operating margin of 41.42%. Net income was 541.084 million CNY, translating to a net margin of 53.43% and earnings per share of 0.17 (basic) / 0.20 (diluted). The quarter showed sharp QoQ momentum from Q4 2023 (revenue up approximately 74.8% QoQ), amid a supportive liquidity backdrop and a robust capital base. On a YoY basis, revenue and net income advanced by mid-teens (approximately 13.9% and 14.8%, respectively), while operating income declined about 33.9% YoY, suggesting a QoQ rebound dominates the quarterly comparison.

The balance sheet remains liquidity-rich and capital-strong: total assets of 159.25 billion CNY, cash and cash equivalents of 10.24 billion CNY, and total stockholders’ equity of 11.47 billion CNY. The bank carries total debt of 14.09 billion CNY with a net debt of 3.85 billion CNY, and a debt-to-equity ratio near 1.23. The reported current ratio of 16.58 indicates ample liquidity coverage. Valuation continues to reflect a conservative multiple framework for a regional bank, with a price-to-book around 0.54 and a price-to-earnings near 2.87, implying potential upside if earnings quality and loan growth stabilize and credit risk remains contained. Management commentary from the earnings call would further illuminate loan book dynamics, NIM trends, and capital allocation plans; however, transcripts for this quarter are not provided in the data.

Overall, the QQ1 2024 results underscore earnings resilience and a strong liquidity position, but investors should monitor asset quality evolution, loan book growth in Luzhou and the broader Sichuan region, and any regulatory shifts that could affect regional banks’ funding costs and capital requirements.