\u3000\u3 China Vanke Co.Ltd(000002) 839 Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) )
Core view
Deep ploughing in Zhangjiagang, expanding in different places and expanding business space . At the same time, Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) was the first batch to realize cross regional operation. In recent years, it has expanded and accelerated in different places, focusing on Suzhou, Nantong and Wuxi. The balance of loans in different places accounts for 50.57% of the total loans Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) operating regional economy is good, and corporate credit has achieved good expansion in recent years.
We firmly upgraded the strategy of small and micro enterprises, and achieved remarkable results in small and micro businesses Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) formerly known as rural credit cooperatives, it has a wide range of local business outlets, high efficiency of information collection, high customer loyalty and small, medium and micro genes. In recent years, a number of high-quality small, medium and micro enterprises have gathered in Suzhou, Nantong and Wuxi, which provide a foundation for Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) developing small and micro businesses. The company has always adhered to the strategic direction of serving “agriculture, rural areas and small businesses”. Since its listing, the company has continuously upgraded the strategy of small and micro businesses and enriched tactical arrangements for five consecutive years, equipped with a senior management team containing small and micro genes, integrated business lines, established inclusive finance headquarters, and created a supporting organizational decision-making and risk management system. The new three-year strategic plan emphasizes the development mode of “two small + driving and four major promoting synergy”, and the small and micro businesses have achieved remarkable results. By the end of 2021, the number of small and micro loans reached 36200, an increase of 46.9%; At the end of the period, the balance of “two small” loans was 39.9 billion yuan, accounting for 63.0% of the total increase, and the balance of loans accounted for 41.2%. Good corporate business, stable expansion of scale and excellent quality. Zhangjiagang’s regional economy is improving, with large and medium-sized enterprises gathered and diversified industrial structure. In 2020, 17 enterprises were selected as the top 100 private enterprises in Suzhou, with strong credit demand, creating considerable business space for the company Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) corporate business decreased year by year, but the scale expanded steadily. By the end of 2021, the scale of corporate loans was 47.33 billion yuan, accounting for 47.4% of the total loan balance. Meanwhile, the non-performing rate and other indicators of corporate business have also continued to decline in recent years, with excellent asset quality.
All financial indicators are at the middle and upper level of listed agricultural and commercial banks The asset structure and debt structure of ABC are at the medium level, and there is little difference between ABC and ABC. Vertically speaking, Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) income scale and asset liability scale have expanded steadily, asset quality is excellent, provision coverage is at a high level, and good business results have been achieved under firm strategic positioning. The profitability of the company is good. At present, roe and ROA are at the middle level of listed rural commercial banks, and the net interest margin ranks in the forefront of listed rural commercial banks. The good performance of net interest margin is mainly driven by high loan income.
Profit forecast and Valuation: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.53/17.9/2.08 billion and EPS will be RMB 0.85/0.99/1.15. Based on the absolute valuation and relative valuation, we believe that the reasonable valuation range of the company’s stock is 7.4 ~ 9.4 yuan, corresponding to the Pb value of 0.98 ~ 1.24x in 2022, with a premium of 8.8% ~ 38.2% relative to the current stock price. Maintain the “overweight” rating by comprehensively considering the company’s valuation, the company’s regional economic situation and strategic positioning
Risk tip: the impact of the epidemic is large, the economy is lower than expected and other factors may affect our judgment. See the text for details.
