\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Data summary: Bank Of Jiangsu Co.Ltd(600919) 2021 net profit of 19.7 billion yuan, with a year-on-year increase of 30.7% and operating revenue of 22.6%; The cost income ratio was 22.44%. At the end of the year, total assets increased by 12.0%, loans increased by 16.5% and deposits increased by 11.2% compared with the beginning of the year. The year-end non-performing rate was 1.08%, the provision coverage rate was 308%, and the core tier 1 capital adequacy ratio was 8.78%. Roe 12 in 202160%。 The company’s performance is excellent and its growth rate leads that of listed banks. With the support of regional economic advantages and the company’s retail and wealth strategies, the growth is prominent, the credit growth is strong, and the handling fee income is high. The continuous improvement of the company’s asset quality has made a positive contribution to the performance. The company recommends a combination at our core and continues to be optimistic. Key points supporting rating
The performance is leading and the middle income is beautiful
Bank Of Jiangsu Co.Ltd(600919) 2021’s performance maintained the leading level of listed banks, and the annual net profit increased by 30.7% year-on-year, driving the annual roe to increase by 0.69 percentage points to 12.6% year-on-year. In 2021, the net fee income achieved a rapid growth of 39.8%. Benefiting from the rapid development of agency business, the company focused on the strategy of “expanding retail business and focusing on wealth management”, and the retail AUM increased by 18.36% in 2021.
Strong credit growth and focus on capital replenishment
Bank Of Jiangsu Co.Ltd(600919) loans grew strongly, driving the proportion of loans in interest bearing assets to increase by 2.2 percentage points to 61% compared with the beginning of the year. The proportion of retail loans in loans increased by 1 percentage point to 40% over the beginning of the year; Personal consumption / operating loans accounted for 51.5% of retail loans, an increase of about 4 percentage points over the beginning of the year. Due to the rapid expansion of the company’s business, the core tier 1 capital adequacy ratio at the end of the year was 8.78%, which was relatively low for listed banks. We believe that benefiting from the advantages of regional economy, the company has sustained growth, and it is expected that external capital is still needed. The company issued 20 billion yuan of convertible bonds in 2019 and paid attention to the process of converting bonds into shares.
Valuation
Considering the improvement of Bank Of Jiangsu Co.Ltd(600919) asset quality and high credit growth, we raised the company’s EPS to 1.63/1.97 yuan in 2022 / 2023 (formerly 1.50/1.78 yuan), and the current share price is 0.66x/0.59x corresponding to Pb in 2022 / 2023, maintaining the overweight rating.
Main risks of rating
The deterioration of asset quality caused by economic downturn exceeded expectations; Regulatory control exceeded expectations.
