Since this year, although a number of urban rural commercial banks have successfully listed on the A-share or H-share market, in terms of the texture of these banks, the asset quality is generally not recognized by investors in the secondary market, and the phenomenon of net breaking is more common, including Qilu Bank Co.Ltd(601665) . In the past six months since its listing, Qilu Bank Co.Ltd(601665) not only has its share price broken, but also the company has appeared in the list of creditors of Peking University Founder and other enterprises.
Or affected by the poor overall performance of bank shares during the year, the IPO issuance price of Bank of Lanzhou, which is about to be listed and traded, also chooses to be lower than the net assets per share, which is an extremely rare phenomenon. In this regard, Bank of Lanzhou also admits that if the issuance price is determined according to the net assets per share, the issuance P / E ratio is 28 times, which does not comply with the P / E ratio guidelines for the issuance of new shares.
listed for only half a year
Qilu Bank Co.Ltd(601665) share price is on the verge of breaking
Qilu Bank Co.Ltd(601665) (601665. SH) is an urban commercial firm rooted in Shandong. It was listed in June this year. After listing, the stock price turned around and fell after a short-term rise to 12.43 yuan. It once fell below the issue price of 5.36 yuan. At present, the latest stock price is only about 5.72 yuan.
In Shandong, the asset quality of Qilu Bank Co.Ltd(601665) is relatively good. According to the data released by Shandong banking and Insurance Regulatory Bureau, from the beginning of 2020 to the third quarter of 2021, the non-performing loan ratio of Shandong banking industry (excluding Qingdao) decreased from 3.28% to 1.63%, and the asset quality was significantly improved, while the non-performing rate of Qilu Bank Co.Ltd(601665) in the same period decreased from 1.49% to 1.32%. From this data comparison, the asset quality of Qilu Bank Co.Ltd(601665) is obviously better than the average level of local banking in Shandong.
However, under the frequent outbreak of credit risk in recent years, Qilu Bank Co.Ltd(601665) has not been completely spared. According to the Qilu Bank Co.Ltd(601665) IPO feedback disclosed on the former CSRC’s official website, Qilu Bank Co.Ltd(601665) was asked to explain the “RMB 680 million default bonds”. By the end of June 2020, Qilu Bank Co.Ltd(601665) non breakeven financial products held a total of 680 million yuan of defaulted bonds. For the off balance sheet business, the CSRC requires Qilu Bank Co.Ltd(601665) to disclose the litigation and recovery, whether the provision for risk is sufficient, and whether it is necessary to make a self repurchase statement in accordance with the new regulations of asset management. If the off balance sheet business is returned to the statement, it is not excluded that the capital adequacy ratio of Qilu Bank Co.Ltd(601665) may decline significantly.
In addition, Qilu Bank Co.Ltd(601665) has also appeared in the list of creditors of bankrupt enterprises several times recently. According to the online materials of bankruptcy reorganization, Qilu Bank Co.Ltd(601665) declared 300 million yuan of creditor’s rights in the bankruptcy reorganization of Peking University Founder group. In May this year, Ping An Insurance (Group) Company Of China Ltd(601318) and other three institutions joined hands to restructure Peking University Founder group. As for the repayment scheme, the ordinary creditor’s rights below 1 million yuan shall be paid in full in cash, and the above part shall be paid in the form of cash + debt repayment with shares. According to an authoritative person quoted by yicai.com, Founder Group has long had major governance imbalances such as insider control, hidden shareholding, numerous shadow enterprises and the proliferation of connected transactions. State owned assets supervision departments, securities supervision departments and financial institutions can learn from the cases.
Not only founder, recently another school enterprise leader Ziguang group passed the bankruptcy reorganization plan. According to the data of the debt statement obtained by the reporter of red weekly, Qilu Bank Co.Ltd(601665) declared debt of 160 million yuan.
In addition, according to the recent announcement of Shenzhen Yitoa Intelligent Control Co.Ltd(300131) (300131. SZ), the subsidiary Qingdao supply chain company had overdue the debt of 20 million yuan for Qilu Bank Co.Ltd(601665) . Qilu Bank Co.Ltd(601665) requires Shenzhen Yitoa Intelligent Control Co.Ltd(300131) as the guarantor to perform its debt repayment obligations.
In the rating report, he Yongxuan and Ge Jiabo, analysts of new century credit, pointed out that Qilu Bank Co.Ltd(601665) performed well in asset quality and risk control in Jinan, but the business quality in Tianjin deserves attention: by the end of 2020, Qilu Bank Co.Ltd(601665) had a non-performing loan rate of 11.33% in Tianjin, an increase of 5.14% over the beginning of the year. There are significant differences in non-performing rates in different regions, ” Qilu Bank Co.Ltd(601665) faces certain challenges in risk management and control of business in remote branches”.
under “capital hunger and thirst”
Qilu Bank Co.Ltd(601665) increase the financing scale of bond issuance
Shortly after listing, Qilu Bank Co.Ltd(601665) made a big move at the personnel level. Huang Jiadong, who has served as the president since the end of 2013, recently transferred to the chairman, and Zhang Hua succeeded the president. At the same time, Cui Xiang no longer served as the board secretary. The company also appointed Tao Wenzhen as the vice president and Hu Jinliang as the board secretary.
Since the beginning of last year, the core tier 1 capital adequacy ratio of Qilu Bank Co.Ltd(601665) has decreased from 10.16% to 9.44% in the third quarterly report of this year. According to wind statistics, among the 41 A-share commercial banks, Qilu Bank Co.Ltd(601665) still ranked 21st in the core tier 1 capital adequacy ratio in early 2020, but it has fallen to 26th in the third quarter of this year. In order to ensure its core tier 1 capital adequacy ratio, Qilu Bank Co.Ltd(601665) has also frequently raised funds through multiple channels in recent years. In 2019, it issued 2 billion yuan of tier 2 capital bonds, and in 2020, it issued 3 billion yuan of sustainable bonds. This year, it has raised nearly 9 billion yuan through the three pronged approach of sustainable bonds + IPO + tier 2 capital bonds.
However, under the continuous fund-raising of more than 10 billion yuan, Qilu Bank Co.Ltd(601665) ‘s “capital hunger” still exists. Recently, the company proposed to issue convertible bonds to raise 8 billion yuan to support future business development, and “supplement the bank’s core tier 1 capital in accordance with relevant regulatory requirements” after the holder’s share conversion.
On the whole, banks have been the major financiers of a shares. In addition to issuing secondary capital bonds, since this year, the financing scale of convertible bonds in the banking sector has reached 60 billion yuan, ranking first in all A-share sectors.
RARE! Bank of Lanzhou IPO broke net
questioned “loss of state-owned assets”
The pressure on Qilu Bank Co.Ltd(601665) is what most listed banks have faced. In order to alleviate the pressure of replenishing capital, commercial banks have been listed one after another in recent years. This year alone, five banks have been added to A-shares, Shanghai Rural Commercial Bank Co.Ltd(601825) , Qilu Bank Co.Ltd(601665) , Bank Of Chongqing Co.Ltd(601963) , Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) and Bank of Lanzhou. This incremental scale is second only to 2019 in recent years.
Attached figure Bank Of Chongqing Co.Ltd(601963) , Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) , Shanghai Rural Commercial Bank Co.Ltd(601825) , Qilu Bank Co.Ltd(601665) share price performance after listing this year
As of December 20, it is arranged from left to right
At present, the valuation of bank shares is not optimistic. According to wind data, among the 41 A-share banks, except Bank Of Ningbo Co.Ltd(002142) , China Merchants Bank Co.Ltd(600036) and other five banks with Pb > 1, the Pb valuation of most listed banks has broken the net. The sluggish performance of the secondary market also affected the primary market, so that there was a rare phenomenon of “net issuance” in banks, such as Bank of Lanzhou.
Public information shows that bank of Lanzhou will be listed and traded in A-Shares recently, and its IPO price is determined as 3.57 yuan / share, lower than the net assets per share of 4.33 yuan. In this regard, Bank of Lanzhou explained that if the issue price is determined according to the net assets per share, the P / E ratio of the issue is 28 times, which does not comply with the P / E ratio guidelines for the issuance of new shares. At the same time, the net breaking degree of Bank Of China Limited(601988) industry’s share price has deepened since this year. The issuance price lower than the net assets per share is also from the perspective of preventing risks and better protecting investors.
Table 1 initial valuation of five newly listed banks this year
Data source: wind
Despite the company’s net breaking issuance, the PE value of the IPO issuance price of Bank of Lanzhou is still as high as 23 times, which is not only much higher than the average valuation of the secondary market of A-share bank shares, but also much higher than the IPO issuance valuation of the other four listed urban and rural commercial banks during the year. For the net issuance of Bank of Lanzhou, some investors questioned the loss of state-owned assets. In this regard, Bank of Lanzhou explained that “the issuance price is not lower than the net assets per share, which is mainly applicable to state-owned enterprises”. Although the company has state-owned equity, it does not belong to state-owned assets controlled shares.
Table 2 performance of broken net bank shares during the year
(the individual stocks mentioned in the article are only for example analysis, and no trading suggestions are made.)
(Red Journal of Finance and Economics)
