\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Event: on April 12, the company released its 2021 annual report, with a revenue of 63.77 billion yuan, yoy + 22.6%; Net profit attributable to parent company: 19.69 billion yuan, yoy + 30.7%; The non-performing rate was 1.08%, the provision coverage rate was 308%, and the roe was 12.6%.
Revenue remained high and profit growth increased again. In terms of year-on-year growth of revenue, the growth rate of net interest income was relatively stable, and the growth rate of net handling fee income increased significantly by 18.9pct month on month, mainly due to the growth of agency business income. The year-on-year growth rate of net profit attributable to the parent company was + 0.2pct quarter on quarter, maintaining a quarterly upward trend, and the performance boom was high. In terms of net profit growth, scale expansion, net interest margin and provision are the core driving forces, of which the provision back feeding profit continues to increase.
The transformation of retailing has been further promoted, and remarkable results have been achieved in wealth management. By the end of 2021, the company's retail deposit balance was yoy + 17.8%, leading the total debt by 5.5pct, providing solid support for the company's high-tech expansion; Retail AUM increased by + 18.4% year-on-year, of which private AUM increased by 26% year-on-year, supporting the rapid growth of the company's medium income and bringing low-cost debt retention.
The net interest margin has stabilized and is expected to continue to improve. In 2021, the company's net interest margin was 2.28%, a significant increase of 14bp over the beginning of the year, basically the same as 21h1. On the asset side, benefiting from the strong regional financing demand, the expansion is inclined to loans, with the loan balance + 16.5% year-on-year, leading the asset growth rate of 4.5pct. Since the second half of 2021, personal loans and loans to metric manufacturing industry have contributed to the main loan increment; On the liability side, the proportion of deposits continues to increase, with a year-on-year increase of + 1.6pct in 2021, which is good for cost optimization. With the development of wealth management, the precipitation of low-cost liabilities is expected to be considerable. Both capital and negative sides work together, and the net interest margin is expected to maintain a stable trend.
The provision for innovation and asset quality coverage are significantly improved. At the end of 2021, the company's non-performing rate decreased by 23bp compared with the beginning of the year, with a quarter on quarter ratio of - 3bp. The asset quality has been continuously consolidated, and the leading indicators also show that the asset quality is expected to continue to improve. The provision coverage ratio increased significantly by 42.8pct compared with the beginning of the year, with a quarter on quarter ratio of + 12.2pct, which is the best level since listing and reserved space for further feeding profits.
The probability of convertible bonds converting into shares is high. The company has a strong willingness to convert 20 billion yuan of convertible bonds into shares. According to the closing price on April 12, 2022, there is only 13.1% space from the strong redemption price. Such an excellent annual report is expected to add another boost to the conversion. If the conversion of shares is realized, the company will be empowered to further expand and fully enjoy the high growth space brought by regional advantages.
Investment suggestion: high performance increase, stable interest margin and high probability of share conversion
The performance has maintained a high boom, the transformation of wealth management has achieved remarkable results, the net interest margin has stabilized, the asset quality continues to improve, and the fundamentals are good, which adds further help to the conversion of convertible bonds into shares. It is estimated that the EPS of 22-24 years will be 1.72 yuan, 2.09 yuan and 2.60 yuan respectively. The closing price on April 12, 2022 corresponds to 0.6 times of 22 years Pb, maintaining the "recommended" rating.
Risk tip: macroeconomic growth rate declines; The development of wealth management business is less than expected; Credit risk exposure
