\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 528 Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) )
Deep cultivation of Keqiao has a stable source of revenue Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) mainly operates in Keqiao District, Shaoxing City, and has branches in Yuecheng district and Yiwu City Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) has established a relatively leading market position in Keqiao district. It is a commercial bank with the largest business outlets and the widest coverage in Keqiao District, with the largest amount of deposits and loans in Keqiao district. The high market share provides a strong guarantee for the revenue source of Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) , and the operating revenue in Keqiao District accounts for 78.59% of its total operating revenue
The local business environment is excellent, and there is still room for growth in cross regional expansion. Shaoxing is located in the economically developed Yangtze River Delta in China, and Keqiao district is an important part of Shaoxing, accounting for nearly 25% of Shaoxing's GDP. Keqiao district has developed private economy and broad deposit and loan space, which provides an excellent business environment for Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) company. At the same time, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) will expand its business area to Yiwu City by setting up branches. Yiwu has developed small commodity trade, strong credit demand, and the balance of deposits and loans of financial institutions is much higher than that of Keqiao district. It is expected to become the main incremental market of Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) in the future.
"Supporting agriculture and supporting small businesses" is in line with the local development characteristics, and the transformation of retail banks has achieved remarkable results. In view of the characteristics of Shaoxing City, such as more private small and micro enterprises and more developed agricultural development, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) adjust measures to local conditions and focus on small and micro enterprise loans and rural financial services. From the perspective of customer types, 99.86% of Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) corporate loan customers are small, medium and micro enterprises. The loan balance of small, medium-sized and micro enterprises was 24.651 billion yuan, accounting for 98.62% of the bank's total corporate loans. At the same time, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) adhered to the strategy of promoting retail banking, the scale of credit loans increased steadily year by year, and the growth of personal consumer loans and credit card business was stable. From 2018 to 2020, the compound growth rates of personal consumption loans and credit card overdraft balances were 24.08% and 3.17% respectively.
Personal business continues to grow. On the asset side, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) personal loans continued to grow, and the balance of personal loans accounted for nearly 60% of the total loans, ranking first among comparable rural commercial banks. However, its main loan quality indicators are at a medium level in ABC, and the asset quality needs to be further consolidated. On the liability side, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) mainly deposits, of which personal time deposits account for 51.19% of customer deposits, 10.63 percentage points higher than the average level of comparable rural commercial banks. The term of time deposit is long and stable, but the cost is slightly high. Therefore, the net interest margin of Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) is at the middle level of the industry Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) 's net profit has increased steadily in recent years, the return on net assets has been further improved, and the profitability is at the middle and upper reaches level among comparable agricultural commercial banks in the same industry.
Profit forecast and Valuation: combining absolute valuation and relative valuation, we believe that the reasonable valuation range of the company's stock is between 9.7-10.8 yuan, and the dynamic price to book ratio this year is 1.0-1.1 times, which has about 3% - 15% premium space relative to the current stock price of the company. Considering the company's valuation, the company's regional economic situation and local advantages, the "overweight" rating is given for the first time.
Risk tip: changes in various factors may affect our judgment. See the text for details.
