\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
The annual performance growth rate exceeded 30%, ranking first among listed banks
The company disclosed its 2021 annual report, and its performance was consistent with that disclosed in the express. The annual revenue and net profit attributable to the parent company increased by 22.58% and 30.72% year-on-year. The performance growth rate reached a ten-year high and ranked first among listed banks. The compound growth rate from 2019 to 2021 was 16.07%, ranking third among listed urban commercial banks with disclosed data. The company's outstanding performance is mainly due to the strong growth of revenue. In addition, the provision back feeding effect is obvious under the consolidation of asset quality.
Both credit volume and price rose, and the structure tilted to retail
In 2021, the company's net interest margin was 2.28%, a slight decrease of 1bp compared with the first half of the year and a year-on-year increase of 14bp. Corporate credit is mainly corporate credit, which is easily affected by reducing the financing cost of the real economy. However, the company has actively promoted retail transformation in recent years. 46% of the new loans in 2021 were retail loans, exceeding corporate loans, which further demonstrated the support effect on the overall credit pricing. Focus on advanced public infrastructure, environmental protection and other fields. At the end of 2021, the balance of manufacturing loans, infrastructure loans and green loans increased by 24%, 16% and 29% respectively year-on-year. In terms of retail loans, the company focused on consumer loans. The ending loan balance increased by 28% year-on-year, and the new loans accounted for 61% of the new retail increment. As the operation of the subsidiary Suyin Kaiji is getting better and better, the scale of gold consumption is expected to be further expanded.
Under the optimization of asset structure, the company actively adjusted and optimized the debt structure, focused on expanding customers and strengthening the base, diversified and expanded the sources of low-cost general deposits. By reducing the proportion of structured deposits and the cost ratio of interbank liabilities, the total cost ratio of interest bearing liabilities decreased by 10bp year-on-year.
AUM exceeded trillion, and the contribution of medium income accelerated
By the end of 2021, the company's retail AUM had reached 922.6 billion yuan, with a year-on-year increase of 18%, of which the Aum of private customers had exceeded 240 billion yuan, with a year-on-year increase of 26%. In the first quarter of this year, the company's retail AUM was the first to exceed 1 trillion yuan among urban commercial banks. With the steady growth of AUM, the company's medium income business grew gratifying. The annual net income from handling fees and commissions increased by 39.83% year-on-year, accounting for 11.75% of revenue. Among them, the income from agency handling fees increased by 39.99% year-on-year, accounting for 75.38% of the income from handling fees and commissions.
The asset quality is stable and improving, and the provision coverage rate has reached a record high
By the end of 21q4, the non-performing rate was 1.08%, down 4bp month on month. The proportion of concerned loans increased by 7bp month on month, but remained at a low level, and the overdue rate was flat month on month. On the whole, the asset quality is stable and good, the overall corporate non-performing rate continues to decline, and the retail non-performing rate increases slightly compared with the end of 21q2. In addition, the company's provision coverage at the end of 21q4 reached 307.72%, the highest level in history, and the risk offset ability continued to strengthen.
Investment suggestion: consolidate the public, speed up retail and maintain the "buy" rating
As the only provincial local legal person bank in Jiangsu, the company can fully enjoy the industrial dividend dominated by Jiangsu manufacturing industry. At the same time, accelerate the development of wealth management business, radiate the Yangtze River Delta and boost retail transformation. At present, nearly 20 billion yuan of convertible bonds of the company have not been converted into shares. Static calculation can improve the core tier 1 capital adequacy ratio by 1.13 PCT, and the completion of the conversion will lay a good capital advance for asset expansion. We are optimistic that while the company continues to consolidate its traditional advantages to the public, promoting retail transformation will bring medium income growth. It is expected that the growth rate of net profit attributable to the parent company from 2022 to 2024 will be 19.17%, 18.21% and 17.54%. At present, Pb (LF) is 0.71x. Give 2022 0.9x target Pb, corresponding to the target price of 10.17 yuan, and maintain the "buy" rating.
Risk warning: the epidemic situation is repeated, the credit demand is insufficient, the credit risk fluctuates, and the Aum growth is less than expected
