Luzhou Bank Co Ltd (1983.HK) Q1 2025 Earnings Report

Luzhou Bank reported strong top-line momentum in QQ1 2025, with revenue and gross profit of 1,006,276,000 CNY, up 23.4% year over year and 9.5% quarter over quarter. Operating income rose to 619,029,000 CNY, a 105.1% YoY increase, while net income reached 451,719,000 CNY, up 49.8% YoY and 69.0% QoQ. Earnings per share stood at 0.17 CNY, up 54.6% YoY and 209.1% QoQ. The G&A expense of 387,247,000 CNY reflects a disciplined cost base, comprising roughly 38.7% of revenue. The company exhibits solid profitability, with net margin of 44.9% and an operating margin of 61.5%, supported by an effective tax rate of 24.1%. Balance-sheet indicators show conservatism on leverage (debt ratio 7.74%) and meaningful liquidity, as evidenced by a cash per share balance of 4.66 CNY. Valuation remains modest, with price-to-book around 0.50 and price-to-earnings near 3.27, suggesting room for multiple expansion if growth drivers and credit quality remain favorable.