\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 009 Bank Of Nanjing Co.Ltd(601009) )
The management of the old brand high-quality city commercial firm has taken on a new look Bank Of Nanjing Co.Ltd(601009) was founded in 1996 and successfully listed in 2007. It has formed a regional business strategy of “rooted in Nanjing – out of Nanjing – out of Jiangsu”, and gradually cultivated three genes of small and micro finance, retail finance and bond business. In 2020, the establishment of new management will bring new vitality to the company, boost its performance, and tilt its business thinking to scale expansion.
Big retail 2.0 was upgraded, and consumer loans and big wealth flourished. In 2020, the company entered the stage of large retail 2.0 reform, and the reform achieved remarkable results. In terms of personal loans, consumer loans account for half of the country, the acquisition of Suning Xiaojin, and the landing of license sector promotes the “re growth” of Xiaojin; Wealth management benefited from the two wheel drive of financial transformation and private differentiated competitive strategy. Retail AUM has increased by 43% since 2018.
The star sea of the public is in Yinzheng, microenterprises and Kechuang. Jiangsu’s economy is “large in quantity and high in quality”, laying the foundation for expansion; bank government cooperation is heating up again, contributing to continuous table expansion and business innovation; small and micro finance is advancing steadily, and the idea is changing from business to customers; the characteristics of science and innovation are further highlighted, giving birth to new growth space and improving asset quality.
Trading bank + bond market gene to create a comprehensive financial landscape. Under the strategy of transaction bank, cash management and supply chain finance are the core, bringing multiple benefits of medium income, deposit and customer stickiness; The advantages of bond business are prominent, with strong investment and underwriting; The two interact with wealth management to jointly shape the company’s comprehensive financial vision.
The performance boom is high, and the high roe is expected to continue. Over the past 21 years, the growth rate of the company’s performance has been significantly repaired, driving the stabilization and recovery of roe to 15.84% of 21q3, and the third place of listed city commercial banks. With high performance, the boom is expected to continue, supporting roe to maintain a high level: 1) it is planned to add 100 outlets, with strong certainty of scale expansion; 2) The proportion of loans in interest bearing assets continues to increase, among which consumer loans are expected to maintain a high growth and improve the favorable net interest margin; 3) With the support of the two major strategies, China’s income has great potential for growth; 4) Strong willingness to convert convertible bonds into shares and sufficient motivation to release performance.
Report cleanliness is not what it used to be. First, the risks of large stock households have entered the stage of debt restructuring, the provision of impairment loss is sufficient, and the subsequent disturbance to asset quality is small; Second, retail, small and micro enterprises help spread risks, the asset quality of banking and government business is supported, and the potential non-performing risk of the company is low; Third, the proportion of non-standard investment continued to decline, and the investment security increased.
Investment suggestion: strategic upgrading contributes to high growth and high quality, and the valuation is supported upward
The new management brings new vitality. The retail 2.0 reform refers to wealth management. The comprehensive financial landscape is gradually clear, and high roe and low NPL are expected to continue. It is estimated that the EPS of 21-23 years will be 1.49 yuan, 1.71 yuan and 1.92 yuan respectively. The closing price on March 23, 2022 corresponds to 0.9 times of 21 year Pb, which is lower than the average and median of comparable companies. It will be covered for the first time and given a “recommended” rating.
Risk warning: macroeconomic growth rate is down; Accelerated exposure of regional credit risk; The transformation was less than expected.