\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 009 Bank Of Nanjing Co.Ltd(601009) )
Event: on March 3, Bank Of Nanjing Co.Ltd(601009) announced that from January 6, 2021 to March 2, 2022, the company’s major shareholder Zijin group and its holding subsidiaries Zijin trust, Nanjing Gaoke Company Limited(600064) , and the person acting in concert Nanjing state owned assets group jointly held the company’s shares from 22.8% to 23.9%, with an increase of more than 1%.
Comments:
The proportion of major shareholders increased by more than 1%, demonstrating their confidence in long-term development. According to the announcement of the company, Zijin group, Nanjing Gaoke Company Limited(600064) and Zijin trust increased their holdings of 15258000 shares, 82205100 shares and 9242200 shares respectively with their own funds, of which Nanjing Gaoke Company Limited(600064) equity changed from January 6 to July 29, 2021, and Zijin group and Zijin trust’s equity changed from February 21 to March 2, 2022. After the implementation of the increase, Zijin group, its holding subsidiaries and persons acting in concert jointly held 23.9% of the company’s shares. This shareholding increase demonstrates the confidence of major shareholders in the development of the company.
Bank Of Nanjing Co.Ltd(601009) deeply cultivate the Yangtze River Delta, with obvious regional advantages. Thanks to the location advantages of Jiangsu Province, Bank Of Nanjing Co.Ltd(601009) credit supply is “prosperous in both supply and demand”, the net interest income and Nim have a foundation for stable operation, and the revenue side has strong support. In the first three quarters of 2021, the year-on-year growth rates of the company’s revenue and net profit attributable to the parent company were 21.0% and 22.4% respectively, and the year-on-year growth rates were 6.9 and 5.3 PCT higher than those in the interim report. While the growth rate of revenue and profit increased, the asset quality of the company remained excellent. Since 2020, the non-performing loan ratio has continued to operate at a low level below 1%, and the provision coverage rate at the end of 21q3 rose to 395.9%. In the future, considering that the company has sufficient project reserves since the beginning of this year and the downward trend of bond market yield is good for non interest end performance, the company’s performance is expected to achieve good growth.
The banking sector is expected to have a better performance in March and April. There are three reasons: 1) since 21q4, the downward pressure on the macro economy has increased, and the “steady growth” has been intensively deployed at important meetings. The successive introduction of the “steady growth” policy is expected to stimulate the credit demand in the investment chain, and the “wide credit” will continue to work; 2) As the real estate stability maintenance policy shifts from the supply side to the demand side, it is expected that the real estate sales will reach the bottom and stabilize in the second quarter of this year, which will help to mitigate risks and form an important support for “steady growth”; 3) According to caixin.com, the recent interest rate self-discipline mechanism regulates the absorption of agreed deposits by commercial banks. It is expected that there are still measures to control the cost of bank liabilities in the future, which will be conducive to the stability of bank NIM.
Earnings forecast, valuation and rating. Benefiting from the regional advantages of Jiangsu, the company’s credit supply this year is “prosperous in both supply and demand”, superimposed with the downward dividend of bond interest rate, and the medium income is expected to achieve good growth, laying a good foundation for the annual profit. At present, the company’s PB valuation (2022e) is only 0.84 times, with outstanding cost performance. The 2021 financial report will be released in April, and the performance growth is expected to be good. We maintain the company’s EPS forecast of 1.54/1.81/2.10 yuan from 2021 to 2023, and the corresponding Pb valuation of the current stock price is 0.94/0.84/0.74 times respectively, maintaining the “overweight” rating.
Risk tip: the downward pressure on the macro economy is increasing, and the credit easing is less than expected
