\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 009 Bank Of Nanjing Co.Ltd(601009) )
Bank Of Nanjing Co.Ltd(601009) march 3 issued the suggestive announcement on increasing the shareholding of more than 5% shareholders by more than 1%. Nanjing Zijin Investment Group Co., Ltd. and its holding subsidiaries Zijin Trust Co., Ltd., Nanjing Gaoke Company Limited(600064) , and the share proportion of Nanjing state owned assets investment management holding (Group) Co., Ltd., who acted in concert, increased from 22.82% to 23.87%, The proportion of shareholding increase exceeds 1%. Zijin group and its subsidiaries increased their holdings of the company’s shares by more than 1%, mainly through secondary transactions, reflecting the confidence and support of shareholders and local governments for the development of the company. The company has abundant public resources, rapid expansion of asset side scale, and active expansion of investment banks and trading banks. At the same time, under the background of retail 2.0 transformation, the proportion of retail loans and personal business line revenue has increased, the stock resources still contribute to the growth, the strategic transformation has been solidly promoted, and the company’s performance is expected to be fast and the growth is sustainable. Under the stable growth market, the market performance of the company is expected to be at a better level among the peers of urban commercial banks.
Key points supporting rating
Zijin group mainly increased its holdings in the secondary market, reflecting its confidence and support for Bank Of Nanjing Co.Ltd(601009) investment.
The shareholding ratio of Nanjing Zijin Investment Group Co., Ltd., Zijin Trust Co., Ltd. and Nanjing Gaoke Company Limited(600064) increased by 0.152%, 0.092% and 0.821% respectively. Among them, about 0.98% of the shares are purchased through centralized bidding through the exchange, and 0.083% of the shares are realized through convertible bonds to shares. Nanjing Zijin investment increased its holdings by 0.083% through convertible bonds and 0.069% through centralized bidding, and the other two increased their holdings through centralized bidding.
Bank of South China convertible bonds entered the conversion period and paid attention to the process of converting bonds into shares.
Bank Of Nanjing Co.Ltd(601009) convertible bonds have entered the stock conversion period on December 21, 2021. On March 3, 2022, the company’s share price was 10.26 yuan / share, and the latest convertible share price of the company was 10.10 yuan / share. The average price in the last 20 trading days was 10.06%. In the last 20 trading days, it exceeded the convertible share price eight times. At present, the company’s core Tier-1 capital adequacy ratio is 10.09%, ranking above that of urban commercial banks. According to the static calculation in the third quarter, if the company converts bonds into shares, it can increase the core capital by 1.7 percentage points, and the capital advantage will be more prominent.
Valuation
The company’s EPS in 2021 / 2022 is 1.56/1.80 yuan. At present, the corresponding price to book ratio in 2021 / 2022 is 0.95x/0.85x, with an overweight rating.
Main risks of rating
The economic downturn led to asset quality deterioration exceeding expectations and regulatory control exceeding expectations.
