\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
The major shareholder reduced 10% of the shares and was transferred by state-owned enterprises in Hangzhou
The company announced on March 1 that the Commonwealth Bank of Australia (CBA), the largest shareholder, plans to transfer 10% of the shares of the company by agreement. After completion, CBA holds 5.56% of the shares of the company and promises to lock the remaining shares for at least three years. Hangzhou urban construction investment group and transportation investment group respectively transferred 5% of the shares, with a total transfer price of 8.275 billion yuan. The two transferee entities are Hangzhou state-owned enterprises.
In recent years, the Australian regulatory authorities have required the four major Australian banks including CBA to gradually divest non core investment businesses. It is expected that the capital released by CBA's reduction will be used to support the business development of Australia and New Zealand. Therefore, we believe that this reduction is due to CBA bank's own strategy and business adjustment, and the remaining shares have been locked for three years, indicating that it is still optimistic about the future of the company.
Further optimize the ownership structure and consolidate the local service capacity
According to the information disclosed by the company, by the end of 2021h1, Hangzhou Finance Bureau and its persons acting in concert had held a total of 23.55% of the shares of the company. After the transfer, the control of state-owned capital over the company has been strengthened, which is conducive to giving full play to the synergy advantages of shareholders and helping business development. For example, Hangzhou urban construction investment group and Hangzhou transportation investment group are both large-scale investors and operators of urban infrastructure in Hangzhou. Their shares will help the company open up growth space in people's livelihood services, infrastructure construction and other fields.
Excellent fundamentals and outstanding performance growth
In recent years, Bank Of Hangzhou Co.Ltd(600926) continued to promote the capacity-building of localized services to the real economy, and continued to create business characteristics in the fields of science and technology finance, wealth management, small and micro finance and so on. With high-quality business areas and correct strategic orientation, the fundamentals of the company continue to improve. In the first three quarters of 2021, the company's operating revenue and net profit attributable to the parent company increased by 19.97% and 26.16% year-on-year respectively, increased by 4.24pct and 3.08pct compared with the first half of 2021, and the year-on-year growth rate of performance ranked third among listed urban commercial banks. In addition, by the end of 21q3, the company's non-performing rate had significantly decreased by 8bp to 0.90% month on month, which was the lowest level in recent ten years. The provision coverage rate had increased by nearly 30pct to 559.42% month on month, which enhanced the ability to resist risks and further thickened the profit space.
The "second five year plan" strategy opens up room for growth
The new round of strategic planning of the company from 2021 to 2025 will focus on the "2255" strategy, with "bigger retail" and "better small and micro enterprises" as the growth pole. In the future, with the retail small and micro businesses getting better and better, the asset liability structure will accelerate the optimization. And because the company is based in Hangzhou, layout the developed economic circle, rooted in the fertile soil for the development of wealth management and small and micro businesses, and has taken the lead in clearing risks, it is expected to take the east wind of the development of regional economy and wealth management business to open up business growth space in the future.
Investment advice: basically face the good trend and maintain the "buy" rating
The company is backed by Hangzhou municipal government and has significant location advantages. The rapid release of profits effectively improved the company's endogenous capital supplement strength. At the same time, nearly 15 billion yuan of convertible bonds of the company have not been converted into shares. Capital supplement, endogenous and exogenous, will effectively support the asset expansion under the company's new strategic approach. We expect that the net profit attributable to the parent company from 2021 to 2023 will increase by 26.26%, 22.27% and 18.34% year-on-year, giving the target pb1.5% for 2022 5 times, corresponding to the target price of 20.04 yuan, maintaining the "buy" rating.
Risk warning: repeated epidemics, weak credit demand, fluctuating credit risk, and the introduction of profit transfer policy
