\u3000\u3000 Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) (603323)
Data overview
Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) 21a net profit attributable to the parent company was + 20.7% year-on-year, and the growth rate was + 3.2pc month on month; Revenue increased by + 1.8% year-on-year and the growth rate was - 0.3pc month on month; Total loans + 21.4% year-on-year, growth rate + 0.4pc month on month, total deposits + 14.8% year-on-year, growth rate + 1.6pc month on month; The non-performing rate was 1.00%, with a chain comparison of -6bp, and the provision coverage rate was 411%, with a chain comparison of + 41pc.
Profit growth continued to improve
21a Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) net profit attributable to the parent company was + 20.7% year-on-year, and the growth rate was + 3.2pc month on month; Revenue was + 1.8% year-on-year, with a growth rate of - 0.3pc month on month. Compared with the year-on-year growth rate of profits of listed banks in the first three quarters, the profit performance is at the top level of the industry. Revenue growth has not yet picked up, and the main negative factors are: ① deposit reserves are ahead, making the growth of interest expenditure significantly faster than that of interest income, dragging down the growth of net interest income; ② Non interest income high base effect. Looking ahead, the rapid growth of credit and the elimination of negative factors are expected to drive the recovery of revenue growth.
High growth continuous verification
Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) credit maintained rapid growth. At the end of 2021, total loans (excluding interest receivable) increased by + 21% year-on-year and + 0.4pc month on month, mainly due to the improvement of penetration in Suzhou. At the end of 2021, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) Suzhou (excluding Wujiang District) loans increased by + 90% over the beginning of the year, 68pc faster than the overall loans. Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) business scope expansion supports the continuous verification of credit growth, which is expected to strongly support the company's future performance growth.
Substantial improvement in asset quality
At the end of the year, the Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) non-performing rate decreased by 6BP to 1.00% month on month, and the provision coverage increased by 41pc to 411% month on month, all of which were the best levels since listing. The asset quality of Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) has been continuously improved, and the overdue 90 + deviation degree of 21h1 is only 28%. It is expected that the asset quality of Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) will continue to improve.
Profit forecast and valuation
Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) profit growth continued to improve, high growth continued to be verified, and asset quality improved significantly. It is estimated that the growth rate of net profit attributable to parent company in 22-23 years will be 15.6% / 15.9%, corresponding to bps7.5% 79 / 8.43 yuan. The target price is raised to RMB 7.00, corresponding to pb0.00 in 22 years 90x。 The current price corresponds to 22 year pb0 67x, current price space 34%, buy rating.
Risk tip: macroeconomic stall and significant exposure of adverse.
