Bank Of Jiangsu Co.Ltd(600919) (600919)
Key investment points:
Head city commercial firm with significant regional advantages and stable business style. Bank Of Jiangsu Co.Ltd(600919) the total assets ranked third among urban commercial banks. In recent two years, the total assets showed an accelerated expansion trend. The revenue and net profit CAGR in recent five years were in double digits. The year-on-year growth rate of revenue and net profit in 2021q3 ranked second and first among comparable urban commercial banks respectively, with excellent performance; In addition, Jiangsu Province has obvious regional economic advantages, dominated by manufacturing and service industries, advanced manufacturing has a good growth momentum, the proportion of emerging industries has increased steadily, Bank Of Jiangsu Co.Ltd(600919) deeply cultivate regional development and continue to benefit from it.
Small and micro enterprises and retailers made dual efforts to optimize the asset structure and improve the loan yield. Bank Of Jiangsu Co.Ltd(600919) in the past five years, the loan balance has maintained a rapid growth rate, and the market share of loans in the province has increased year by year, firmly stabilizing the basic market. Corporate loans are the main source of loans, of which small and micro loans account for the main component. Since 2019, corporate loans have begun to accelerate growth, and the market share of small and micro enterprise loans in Jiangsu Province ranks first, far ahead of the second. At present, Bank Of Jiangsu Co.Ltd(600919) focuses on inclusive small and micro loans. Under the background of policy support, the loan balance has grown rapidly, driving the growth of total loans. In terms of retail business, the scale of personal loans has expanded rapidly, and personal housing loans and consumer loans have become the cornerstone of retail loans. The rapid growth of consumer loans and credit card loans has opened a new growth point for interest income, making Bank Of Jiangsu Co.Ltd(600919) more stable and higher loan yield than its peers.
The improvement of deposit structure leads to the decrease of debt cost ratio and the increase of demand proportion. Bank Of Jiangsu Co.Ltd(600919) the balance of deposits increased steadily, the proportion of corporate and personal deposits was about 7:3, and the proportion of deposits in total liabilities was high. Among them, the growth rate of personal time deposits is fast, the growth rate of personal demand deposits remains relatively stable, and the growth rate of corporate demand deposits is upward, Bank Of Jiangsu Co.Ltd(600919) through deep excavation of supply chain management, strengthening cooperation with industry, and fully tapping the potential of corporate demand deposits, so as to effectively reduce the debt cost. At present, in general, there is still room for improvement in the proportion of demand deposits, and the interest margin can be improved in the future.
Profit forecast: in combination with the background of Bank of Jiangsu increasing business investment and deepening retail business, according to the valuation level of urban commercial banks, the valuation level is given as 0.8xpb, and the valuation in 2022 is given as 9.55 yuan / share. Combined with the current stock price and market benchmark comprehensive factors, it is expected that Bank Of Jiangsu Co.Ltd(600919) will exceed the benchmark by 48.4% and be rated as "strongly recommended" for the first time.
Risk tips: market risk, credit risk, liquidity risk, operational risk, etc.
