\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Highlights of the financial report: 1. The performance maintained high growth and the growth sustainability was strong. The logic was gradually fulfilled: the company’s annual revenue increased by 22.6% year-on-year and net profit increased by 30.7% year-on-year. The revenue side achieved a high growth of 22.6%, which is better than that of most peers, which is an embodiment of the company’s excellent active management ability: Bank Of Jiangsu Co.Ltd(600919) total asset scale grew by only 12% year-on-year. It can be seen that the high growth of the revenue side is not completely driven by scale, but also includes the positive contribution of the net interest margin realized by the optimization of the company’s structure year-on-year; And the high growth contribution of non interest income. The profit increased by 30.7% year-on-year, and increased quarter by quarter. On the one hand, the high growth of net profit is a solid support for the high growth of revenue. On the other hand, the burden of asset quality stock is removed, and the provision can release the profit space. 2. Growth rate and structure of assets and liabilities: the scale of new loans is much better than that in 20 years; The newly added deposits of individuals on the liability side are higher than those to the company. The new loans in the fourth quarter alone were 23.2 billion, an increase of 2 billion less than the same period last year, which was a major drag on the public end, which was related to the rhythm of the company’s credit supply; In terms of the whole year, it is much better for the public than 20 years Bank Of Jiangsu Co.Ltd(600919) in the 21st year, new loans increased by 19.6 billion, an increase of 37.4 billion year-on-year; At the beginning of the 21st century, the economy was good, and the company’s credit supply was mainly concentrated in the first to third quarters, while the corresponding fourth quarter was lower than that in the same period last year. In the fourth quarter alone, new deposits increased by – 23.9 billion, an increase of 1.5 billion less than the same period last year, which is also related to the manipulation between quarters. Deposits increased by 145 billion in the whole year, an increase of 24.2 billion over the same period last year. In the past 21 years, the industry has been under great pressure to attract storage as a whole, and the company’s year-on-year increase has been a very brilliant achievement. The scale of new personal deposits is higher than that of corporate deposits, which reflects the effectiveness of the company’s retail transformation to a certain extent (the new corporate and personal deposits in the whole year were 52.8 billion and 63.8 billion respectively). 3. The net handling fee is close to the high growth rate of 40% year-on-year (vs + 21% year-on-year in q1-3q), which is significantly higher than the growth rate in q1-3q. Agency, trusteeship, credit commitment and bank card handling fees increased by 40%, 47%, 77 and 95% year-on-year respectively, and the growth rate was higher than that of the half year. Under the retail force, it is expected that the handling fee income from commission sales of wealth management and funds will achieve relatively high growth. 4. Asset quality: the burden of stock is removed, and the provision can release the profit space. Through years of steady operation, the company has gradually cleared the bad assets. At present, the stock risk has been clearly cleared. The incremental risk benefits from the regional economy and will continue to be better than the market expectation. The non-performing balance and ratio continued to decline; The net generation of non-performing assets also decreased month on month. The cumulative annualized NPL in 2021 became 0.8%, down 8bp month on month. The non-performing continued the trend of the first three quarters, and the non-performing rate continued to decline 4bp to 1.08% month on month. The overdue rate and the proportion of loans overdue for more than 90 days in the total loans were 1.17% and 0.8% respectively, with a change of -13bp and +1bp compared with half a year. The identification of non-performing goods was tightened, and the proportion of overdue non-performing goods decreased by 3.5% to 108.6% compared with half a year, close to 100%, that is, most of the overdue non-performing goods were included in the non-performing goods. The provision coverage rate was 307.7%, up 12.2 percentage points month on month; The loan allocation ratio was 3.33%, up 3 BP month on month.
Insufficient financial report: 4q21 net interest income increased by – 1% month on month, and the interest margin was the main drag. Among them, the scale of interest bearing assets increased by 1.4% month on month, and the net interest margin at the annualized time point in a single quarter was 1.81%, down 4bp month on month. The return on assets decreased by 10bp month on month, and the interest payment rate on liabilities decreased by 7bp month on month. Asset side expected pricing and credit structure are both dragged down: the rate of return on investment assets decreases; The proportion of low-yield bills in the credit structure increased.
Investment suggestion: high growth, strong sustainability and high cost performance. Company 2022e, 2023epb0 64X/0.56X； PE4. 73x / 3.94x (City Commercial Bank pb0.76x / 0.68x; pe6.4x / 5.65x) Bank Of Jiangsu Co.Ltd(600919) has built an excellent business and organizational structure, and a stable management has cultivated a steady, pragmatic and enterprising corporate culture. Excellent business organization structure and corporate culture can ensure that this bank deeply rooted in high-quality areas can become an excellent bank in the medium and long term.
Note: according to the 21st Annual Report, we fine tune the profit forecast and predict that the net profit attributable to the parent company from 2022 to 2023 will be 23.9 billion and 28.5 billion (the previous values were 22.8 billion and 26.3 billion).
Risk tip: the economic downturn exceeded expectations and the company’s operation was less than expected.
