Bank Of Suzhou Co.Ltd(002966) (002966)
Bank Of Suzhou Co.Ltd(002966) is the only city commercial bank in Suzhou. Relying on Suzhou’s excellent regional economic advantages and strong local industrial background, it deeply cultivates the region, has a solid foundation for public and retail customers, and firmly and continuously promotes the strategy of small and medium-sized enterprises and retail. The company has sufficient capital and provisions, and its scale, income and profit are expected to continue to grow rapidly. We believe that the company will repair the valuation of Jiangsu and Zhejiang Chengnong commercial bank in the future, cover it for the first time and give an overweight rating.
Bank Of Suzhou Co.Ltd(002966) is a city commercial bank transformed from a rural commercial bank. It is the only city commercial bank with legal personality in Suzhou. It is held by local state-owned assets and advantageous enterprises, and the distribution and number of outlets have outstanding advantages in Suzhou.
Suzhou enjoys strong economic support and strong regional industrial foundation. Suzhou’s economic and financial strength ranks first in Jiangsu, with a strong regional industrial foundation, the upgrading and transformation of “made in Suzhou”, the continuous inflow of population, and the per capita disposable income ranks first in Jiangsu. Suzhou’s economic, industrial and demographic advantages provide sufficient customer resources and market space for Bank Of Suzhou Co.Ltd(002966) development.
Firmly cultivate small and medium-sized enterprises and take the people as the United States. In terms of corporate orientation, the market for small and medium-sized enterprises, serving small and micro enterprises accounted for more than 90%, and Pratt & Whitney small and micro loans increased steadily. In terms of retail, more than 7 million citizen cards are the only issuer, the customer base is constantly activated, both ends of deposits and loans are making efforts, actively expanding wealth management business, and the income from agency and financial management is rising steadily.
Bank Of Suzhou Co.Ltd(002966) the financial and business characteristics are both urban commercial and rural commercial. Both roae and roaa are at the medium level of urban rural commercial banks in Jiangsu and Zhejiang district. From the perspective of ROA disassembly, Bank Of Suzhou Co.Ltd(002966) handling fees and other non interest continued to perform well, supporting income performed well, interest margin, expenses and credit costs were in the middle of comparable peers, and the provision level was high.
We believe that Bank Of Suzhou Co.Ltd(002966) future profits may maintain rapid growth. Bank Of Suzhou Co.Ltd(002966) the region has developed economy, large market space, significant customer base advantages and sufficient core Tier-1 capital. It is expected to maintain rapid growth of assets and credit in the future. The margin of the profit transfer policy slowed down, and the subsequent interest margin narrowed slightly, and the narrowing range decreased. Wealth, investment banking and other businesses are growing at a high speed, and Zhongshou is expected to maintain high-speed growth and be in the upper reaches of the same industry. The stock of non-performing assets is cleared, the provision is high, the asset quality is stable, and the credit cost is also stable.
Valuation
We predict that EPS will be 0.92/1.09/1.28 yuan from 2021 to 2023, and BVPs will be 9.64 yuan in 2021. We predict Bank Of Suzhou Co.Ltd(002966) pb0.1 in 2021 70X, 2022 pb0 63x, giving overweight rating for the first time.
Risk tip: the economy has fallen sharply, and the deterioration of asset quality has exceeded expectations; Suzhou’s local economy or core industries were impacted by the downturn than expected.
