\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Towards refinement: from scale to efficiency, from products to services
Bank Of Hangzhou Co.Ltd(600926) the new strategy (20212025) has important implications. Generally speaking, the core pricing factor of the financial industry is long-term cooperative relationship or customer stickiness, but stickiness is not achieved overnight, but accumulated. Behind it is the transformation from product relationship to customer service relationship. Specifically, the company continues to provide customers with high-quality products and differentiated services. The long-term accumulation of customers’ satisfaction with multiple products or services is transformed into trust in the customer manager or the company’s brand, and the stickiness is established.
In the first five-year plan, Bank Of Hangzhou Co.Ltd(600926) has stabilized the asset quality through the adjustment of credit asset structure. In the new strategy, while continuing to prudently operate the on balance sheet business, Bank Of Hangzhou Co.Ltd(600926) has made efforts to retail and microenterprises. What business lines have in common is that they all emphasize customer stratification and online, and attach importance to technology and data to improve customer experience. This is the beginning of accelerating the accumulation of brand benefits.
Corporate business: the on balance sheet business is promoted prudently, and the off balance sheet business is continuously optimized
On balance sheet business moves forward prudently. (1) Structural adjustment: the proportion of loans in water conservancy, environment and public facilities management industries with good quality increased steadily, and the proportion of loans in transportation, wholesale and retail, finance, construction and other industries with rising non-performing rate decreased. (2) Support physical enterprises and technological and cultural innovation: including key customers such as large-scale leading manufacturing industry, specialized and excellent manufacturing industry, scientific and technological manufacturing industry and export-oriented manufacturing industry; Upgrade the scientific, technological, cultural and financial innovation system, establish three major scientific and technological innovation centers, implement customer stratification and improve the product system.
Off balance sheet businesses are mainly trading banks and investment banks: (1) the former takes financial, trade and foreign exchange businesses as the engine and actively cooperates with government affairs and small and micro enterprises; (2) The latter relies on the strong customer base in the province to continuously improve the penetration rate and promote the rapid development of bond underwriting and ABS business.
Retail business: Drainage + financing + wealth management
The standard mode of retail business is drainage + financing + wealth management. In terms of drainage, Bank Of Hangzhou Co.Ltd(600926) takes direct bank and e-bank as the starting point to get customers online; In terms of financing, it mainly expands the credit card business and promotes the sinking of consumer loan credit; In terms of wealth management, we began to implement customer stratification, increase consignment categories, expand the team, and realize the rapid growth of consignment sales of wealth categories.
Relying on the “small cloud” business model outside the province to promote
From the perspective of loan types, Bank Of Hangzhou Co.Ltd(600926) attaches importance to data and makes efforts in mortgage loans and credit loans. In terms of mortgage, relying on “cloud mortgage”, it provides customers with integrated and online services to improve efficiency. The application of grid and the implementation of customer assessment system are the main aspects. From the perspective of customer acquisition mode, the branches in the province quickly established a small and micro loan team, implemented standardized and professional operation, established a credit small and micro business management department, copied and promoted the “Taizhou” mode, while the branches outside the province mainly focused on “cloud mortgage”.
Investment advice
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 8.685/10.171/12.262 billion respectively, with a year-on-year increase of 21.7% / 17.11% / 20.55%, and the corresponding EPS will be RMB 1.42/1.67/2.01 respectively. It is predicted that the reasonable valuation center is 122.8 billion, which is covered for the first time and rated as “buy”.
Risk tips
Macroeconomic contraction exceeded expectations.
