\u3000\u3 China Vanke Co.Ltd(000002) 839 Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) )
Event description
The company released its 2021 annual report, with annual revenue of 4.616 billion yuan, a year-on-year increase of + 10.05%; The net profit attributable to the parent company was 1.304 billion yuan, a year-on-year increase of + 30.30%, with a weighted average roe of 11.5% 08%, an increase of 1.93 percentage points over the same period last year.
Event comments
Non interest growth + provision for slow release to promote high profit growth. The growth rate of net profit attributable to the parent company increased by 0.53 percentage points compared with the performance express, which is the second highest listed bank in the performance express. Profitability improvement, roa0 87%, increased by 0.12 percentage points, and ROA and roe reached the best in 2015. 1) Pressure on interest margin: net interest income increased by 2.50%, and the growth rate decreased, which was mainly affected by the decline of yield. The loan yield decreased by 19bp, while the liability end cost increased, the deposit cost rate increased by 14bp, the liability cost rate increased by 2.51%, increased by 26bp, and the net interest margin was under pressure, down 31bp compared with the same period last year. 2) Growth of non interest income: the handling fee income increased from – 9.78 million to 124 million yuan last year. The handling fee income of agency financial management business increased by 253%. Due to the increase of aggregate payment business, the handling fee income of e-banking increased by 40%. 3) Provision mitigation: credit impairment loss decreased by 4.85%
Further promote the “two small” strategy and drive the expansion of credit supply. As a regional city commercial bank, the company’s business layout is in Suzhou, Wuxi, Nantong and other places, adheres to the differentiation strategy of “small and scattered”, adheres to supporting agriculture and small, and increases the service and support to rural finance and small and micro enterprises. The total amount of credit increased and the structure was optimized. In 2021, there were 255200 credit customers, an increase of 68% over the end of the previous year, the scale maintained rapid growth, and the total assets and loan balance increased by 14.44% and 17.63% respectively. Loans to small and micro enterprises and private enterprises were 63.7 billion yuan / 58.6 billion yuan, an increase of 21% / 18%, accounting for 66% / 60%. The proportion of retail loans increased from 40.79% to 44.42%.
Deep cultivation of the local economy has prominent regional advantages. In Zhangjiagang, the incremental market share of deposits (22.92%) and the total market share (21.76%) both ranked first in the city. The incremental market share of savings deposits reached 48.53%, the scale of deposits increased by 13.03%, and the proportion of personal time deposits increased by 23.19%, from 41.05% to 44.74%. Promote the implementation of the strategy of strengthening the head office,
The asset quality was stable and improved, and the non-performing amount rate decreased. The provision coverage has increased significantly, reaching the best level in recent ten years. The non-performing loan ratio was 0.95%, down 0.22 percentage points, the special loan was 1.61%, down 0.09 percentage points, and the provision coverage was 475.35%, a significant increase of 167.52 percentage points over the end of the previous year; The loan provision ratio was 4.49%, an increase of 0.88 percentage points.
Investment advice
The implementation of the company’s differentiation strategy path is effective, Inclusive Finance and small and micro enterprises have a high penetration, and the asset quality is improved to ensure profitability. It is estimated that the company’s revenue from 2022 to 2024 will be 5.203 billion yuan, 5.885 billion yuan and 6.714 billion yuan respectively, the net profit attributable to the parent company will be 1.488 billion yuan, 1.738 billion yuan and 2.015 billion yuan respectively, the EPS will be 0.82, 0.96 and 1.11 respectively, the net assets per share will be 9.89, 10.51 and 12.01, and the corresponding Pb will be 0.61, 0.57 and 0.50 times respectively. Give “overweight” rating.
There are risks
A sharp decline in macro-economy; Major risk events occur in the company; Local outbreaks are repeated.
