\u3000\u3000 Shanghai Pudong Development Bank Co.Ltd(600000) (600000)
Key investment points
Event overview
On January 7, 2022, Shanghai Pudong Development Bank Co.Ltd(600000) announced that Puyin financial management was approved to start business by the cbcirc.
Wealth leaves an important child
The approval of the opening of Shanghai Pudong Development Bank Co.Ltd(600000) wealth management subsidiary shows that the effectiveness of Shanghai Pudong Development Bank Co.Ltd(600000) wealth management transformation has been recognized by regulators. It also marks that Shanghai Pudong Development Bank Co.Ltd(600000) has left an important subsidiary in wealth management. The wealth management business is light loaded and is expected to contribute new profit points.
Expected to support operating performance
The approval of the opening of the financial management sub branch marks that the pressure on off balance sheet financial management rectification has subsided, which is expected to drive the rapid growth of financial management scale and support business performance. According to static calculation, if Shanghai Pudong Development Bank Co.Ltd(600000) "off balance sheet financial management scale / total assets" at the end of 21h1 reaches the level of China Merchants Bank, and the rate is the same as that at the end of 20a, it is expected to increase 21h1roa4bp.
Cost effective bank target
As of the closing on January 7, 2022, Shanghai Pudong Development Bank Co.Ltd(600000) Pb valuation in 2022 was only 0.42x, falling back to the very low percentile level of 4% in recent five years, highlighting the valuation cost performance.
Profit forecast and valuation
The landing of financial management license has left an important child of wealth strategy. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will increase by - 4.82% / 10.26% / 10.62% year-on-year, corresponding to bps19 RMB 27 / 20.80/22.49 shares. The current price corresponds to 0.45/0.42/0.39 times of Pb valuation. Maintain the target price of RMB 19.15 (after dividend adjustment), corresponding to pb0.5 in 2022 92x, the current price corresponds to pb0.00 in 2022 42x, 120% of the current price space.
Risk tip: macroeconomic stall and significant exposure of adverse.
