\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Event: on March 1, 2022, Bank Of Hangzhou Co.Ltd(600926) issued a notice of equity change. The Commonwealth Bank of Australia (hereinafter referred to as “CBA”), the largest shareholder of the company, transferred 296.8 million shares of the company to Hangzhou urban investment and Hangzhou Stock Exchange respectively by agreement transfer, accounting for 10% of the total share capital of the company, and the transfer price was 13.94 yuan / share.
CBA’s equity transfer is mainly due to its own strategic adjustment, and the remaining equity continues to be locked. Affected by the slowdown of economic growth in Australia, CBA’s business pressure has increased. Its management also said that part of the reason for this equity transfer is that it will focus more on the local banking business in Australia and New Zealand in the future; After the reduction, CBA still holds 5.56% equity and promises not to dispose of the remaining shares within three years, which we believe reflects its confidence in Bank Of Hangzhou Co.Ltd(600926) ‘s operation.
The superimposed locking period of the agreement transfer is 5 years, which has little impact on the overall market. The agreement transfer between major shareholders will not have an impact on the circulation of the secondary market in theory, and according to the regulatory provisions, the shares in this transaction shall not be transferred within five years, which increases the stability of the shareholding of major shareholders.
The shareholding of state-owned assets in Hangzhou has increased, and the bank government cooperation may be closer. After the equity transfer, Hangzhou Finance Bureau passively became the largest shareholder, and the proportion of state-owned assets in Hangzhou increased in the overall equity structure. We expect that the cooperation between banks and securities is expected to be closer, which will bring resource injection and Benefit Asset expansion and low interest debt absorption.
Both high growth and high asset quality. The strong demand for location financing has driven the revenue and profit of 21q3 to grow by more than 20%, ranking high among listed banks; The non-performing rate has continued to decline since 16 years, reaching a record low of 0.9% in 21q3, driving the provision coverage rate to rise to 559.4%, laying a solid foundation for performance release.
Investment suggestion: the agreement transfer is beneficial to the cooperation between banks and securities, and the “high growth + high quality” continues to deduce that the equity transfer is the strategic consideration of foreign shareholders, and the increase of the shareholding proportion of state-owned assets in Hangzhou is expected to promote closer cooperation between banks and securities and support the performance boom. It is estimated that the EPS of 22 / 23 years will be 1.82 yuan and 2.18 yuan respectively. The closing price on March 1, 2022 corresponds to 1.2 times of 21-year Pb, which is covered for the first time and given a “recommended” rating.
Risk warning: regional economic development is less than expected; Asset quality is under pressure due to economic downturn; Increased external risks.
