\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
The event company released its annual report for 2021.
In 2021, the company achieved an operating revenue of 63.771 billion yuan, a year-on-year increase of 22.58%, and a net profit attributable to the parent company of 19.694 billion yuan, a year-on-year increase of 30.72%; Roe (weighted average) was 12.6%, with a year-on-year increase of 0.69 percentage points; Dilute eps1 21 yuan, flat year-on-year. The company’s operating income maintained a double-digit high growth, the credit impairment offset back to feed profits, and the performance led the listed banks. The company’s credit impairment was 22.2 billion yuan, a year-on-year decrease of 49.1%.
Nim has widened significantly, the credit structure has been optimized, and the deposit cost has dropped. In 2021, the company’s net interest income was 45.48 billion yuan, a year-on-year increase of 22.96%, which is mainly driven by the improvement of interest margin. In 2021, the NIM of the company was 2.28%, with a year-on-year increase of 14bp. The steady growth of credit supply on the asset side is conducive to boosting the yield. By the end of 2021, the balance of various loans of the company had reached 1400172 billion yuan, a year-on-year increase of 16.52%, and the public and retail loans had increased by 13.99% and 19.48% respectively. The proportion in the total loans had changed by – 1.15 and 0.99 percentage points. Retail loans are mainly mortgage and consumer loans, and the allocation proportion of consumer loans has increased, which is conducive to the improvement of overall pricing. At the same time, the growth trend of debt side deposits was good, and the cost decreased significantly, helping to repair the interest margin. By the end of 2021, the balance of various deposits of the company was RMB 1451216 billion, with a year-on-year increase of 11.10%. Among them, the average cost rate of deposits was 2.32%, a year-on-year decrease of 15bp, driving the cost rate of interest bearing liabilities to decrease by 10bp.
The income from intermediary business increased by nearly 40%, and the contribution of revenue increased steadily. In 2021, the company’s non interest income was 18.292 billion yuan, a year-on-year increase of 21.62%; The intermediate business income was 7.49 billion yuan, a year-on-year increase of 39.83%, accounting for 11.75% of the revenue, an increase of 1.45 percentage points year-on-year. Among them, the agency fee income increased by 39.99% year-on-year, and the financial management business contributed more than half; Commission income from custody and other entrusted businesses increased by 47.13% year-on-year; Credit commitment fee and commission income increased by 76.76% year-on-year. Other non interest income maintained steady growth. In 2021, the company’s other non interest income was 10.802 billion yuan, a year-on-year increase of 11.55%. Among them, investment income (including profit and loss from changes in fair value) increased by 11.52% year-on-year.
The asset quality was optimized and the ability of risk offset was enhanced. By the end of 2021, the company’s non-performing rate was 1.08%, a year-on-year decrease of 0.24 percentage points, which was significantly improved and decreased year by year in the six years since listing; Concern loans accounted for 1.34%, down 0.02 percentage points year-on-year. In addition, the provision coverage was further improved and the risk offset capacity was enhanced. By the end of March 2021, the company’s provision coverage rate was 307.22%, an increase of 51.32 percentage points year-on-year, and the risk offset ability was further enhanced.
The investment suggestion company is deeply rooted in the economically developed regions of Jiangsu, with rich financial resources and broad development prospects. It has obvious service advantages in small and micro enterprises and manufacturing industry, and many business indicators rank first in the province. On the asset side, the credit supply continues to increase and the structure is optimized, which helps to improve the interest margin; The income of intermediary business agents increased rapidly, the development trend of wealth management business was good, and the profit space was thickened. Accelerate the application of financial technology, implement the intelligent financial evolution project, and comprehensively enable business development and operation management. Combined with the company’s fundamentals and stock price elasticity, we give a “recommended” rating. From 2022 to 2024, BVPs was 11.48/12.89/14.6 yuan, corresponding to the current stock price Pb of 0.64x/0.57x/0.5x.
The risk indicates the risk that the macroeconomic repair is not as expected, resulting in the deterioration of asset quality.
