On March 24, Xiamen Bank Co.Ltd(601187) announced that from February 24, 2022 to March 23, 2022, the closing price of the company’s A-Shares had been lower than the latest audited net assets per share for 20 consecutive trading days, meeting the conditions for triggering the measures to stabilize the stock price.
The reporter noted that since the beginning of this year, a number of banks, including Bank Of Chongqing Co.Ltd(601963) , China Zheshang Bank Co.Ltd(601916) , Chongqing Rural Commercial Bank Co.Ltd(601077) and others, have triggered stock price stabilization mechanisms, and successively adopted measures such as directors, executives or shareholders to increase their shares to stabilize the stock price.
At present, Pb in A-share banking sector is only 0.63 times, at an all-time low. From the perspective of individual stocks in the sector, up to now, 35 stocks have “broken the net”, accounting for more than 80%.
In the annual report season of listed banks, from the disclosed annual report or performance forecast, more than 20 banks achieved double-digit net profit growth in 2021. The analysis pointed out that the annual report quarter will drive the repair of bank stock valuation.
several banks stabilized their share prices
According to the Xiamen Bank Co.Ltd(601187) announcement, the latest net asset per audited by the bank was adjusted to $6.78 after ex dividend. From February 24, 2022 to March 23, 2022, the closing price of A-Shares of the company has been lower than the latest audited net assets per share for 20 consecutive trading days, meeting the conditions for triggering the measures to stabilize the stock price.
The bank will convene the board of directors before April 8, 2022 to formulate and announce specific measures to stabilize the stock price.
The performance express shows that in 2021, Xiamen Bank Co.Ltd(601187) achieved a net profit of 2.162 billion yuan attributable to shareholders of listed companies, an increase of 18.65% year-on-year. By the end of 2021, the bank’s total assets were 329306 billion yuan, an increase of 15.49% over the beginning of the year.
At the beginning of March, Xiamen Bank Co.Ltd(601187) announced that according to the requirements of Xiamen municipal Party committee and Xiamen Municipal People’s government, all 480 million shares of the bank held by Xiamen Municipal Finance Bureau will be transferred to Xiamen Jinyuan Investment Group Co., Ltd., which is a municipal state-owned financial holding group established by Xiamen municipal Party committee and Xiamen municipal government, and the Municipal Finance Bureau is the only investor. This equity transfer may lead to the change of the bank’s largest shareholder, while the bank has no controlling shareholder and no actual controller.
The reporter noted that in addition to Xiamen Bank Co.Ltd(601187) , Bank Of Chongqing Co.Ltd(601963) , China Zheshang Bank Co.Ltd(601916) , Chongqing Rural Commercial Bank Co.Ltd(601077) and other banks have triggered the stock price stability maintenance mechanism since this year, and successively adopted measures such as increasing the shares held by directors, executives or shareholders to stabilize the stock price
For example, Bank Of Chongqing Co.Ltd(601963) 12 directors and senior executives plan to increase their shares in the bank with their own funds, with a total increase of no less than 763400 yuan; In addition, Chongqing Yufu, the largest shareholder of the bank, plans to increase its shares by no less than 25.859 million yuan.
China Zheshang Bank Co.Ltd(601916) 7 directors and senior executives increased their A shares of the company by no less than 15% of the total remuneration (after tax) they received from the bank in the previous year. In addition to completing the compulsory increase, the current 6 senior executives voluntarily increased their A shares of the bank with their own funds. The total amount of compulsory increase and voluntary increase shall not be less than 5.3428 million yuan.
Chongqing Rural Commercial Bank Co.Ltd(601077) 9 directors and senior executives increase their shares in the bank with their own funds that do not exceed 15% of the salary (after tax) received from the bank in the previous year.
more than 20 banks achieved double-digit increase in net profit last year
At present, the overall valuation of the banking sector is at a historical low. As of March 24, the “broken net” stocks in the A-share banking sector accounted for more than 80%.
At the meeting of the Finance Committee of the State Council held on March 16, it was proposed that the economy in the first quarter should be invigorated, the monetary policy should take the initiative to deal with it, and the new loans should maintain a moderate growth. With regard to real estate enterprises, we should timely study and put forward effective risk prevention and resolution solutions, and put forward supporting measures for the transformation to a new development model.
The industry believes that the meeting of the financial committee will guide credit lending and resolve the risks of real estate enterprises. In the context of the sustained efforts of the steady growth policy, it helps to repair market expectations and promote the bank’s share price to return to a reasonable valuation.
In addition, the bank’s annual report season has begun, and three joint-stock banks have disclosed their annual reports China Merchants Bank Co.Ltd(600036) , Ping An Bank Co.Ltd(000001) net profit increased by more than 20% year-on-year, and revenue increased by more than 10% year-on-year China Citic Bank Corporation Limited(601998) net profit increased by 13.6% and revenue increased by 5.05%.
In combination with the previously disclosed performance express or performance forecast, including the above three joint-stock banks, 25 banks reported their performance, of which 21 banks achieved double-digit net profit growth in 202 7
Moreover, in the first ten days of this month, the six major banks collectively announced the operation of the first two months of this year for the first time. The overall business has made steady progress and 2022 has made a good start. The active release of positive signals helps boost market sentiment.
The industry believes that the disclosed performance express shows that the overall net profit of the bank has maintained rapid growth, and the asset quality has performed well. The overall fundamentals are stable, which supports the valuation.
Huaxi Securities Co.Ltd(002926) research report pointed out that the government work report set the tone of steady growth and wide credit, which strengthened the certainty of industry fundamentals at the level of scale and credit risk. Combined with the recent marginal loosening of policies in the real estate field, it helps to improve market expectations and also helps to support the credit supply this year. In the follow-up, the overall sector also has policy support. The catalytic performance of banks during the performance period of the annual report and the relatively low valuation of the sector also enhance the space for overall repair.
