\u3000\u3000 Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) (603323)
Key investment points
Summary of financial report: 1. The net profit attributable to the parent company increased by 21% year-on-year. In the whole year of 21, the growth rate of revenue remained stable, with a year-on-year increase of 1.8%; Under the excellent asset quality, the provision released profits and promoted the growth rate of net profit attributable to the parent by 20.7% year-on-year. 2. The growth rate of deposits and loans is beautiful, and the growth rate of loans and retail loans in Suzhou is good. Asset side loans maintained a strong growth rate, with a month on month increase of 3.6% and a year-on-year increase of 21.4%. Deposit 4q increased by 5.1% month on month, and the year-on-year growth rate of the whole year widened to 17.1% compared with the third quarter. The overall growth rate was excellent. 3. Asset quality continues to be consolidated, and the provision level is the best in history. The non-performing rate continued to decline 6BP to 1.00% month on month, the best level since 2012. Provision coverage is further consolidated to a high level. The coverage rate was 411.10% in 2021, 41.0pct higher than 3Q.
In the whole year of 21, the growth rate of revenue remained stable, with a year-on-year increase of 1.8%; The company’s expenses were well controlled, supporting the growth of operating profit and net profit attributable to the parent company to maintain a high growth, with a year-on-year increase of 24.6% and 20.7% respectively. 1q21-2021 revenue, operating profit and net profit attributable to parent company increased by – 0.8% / 1.8% / 2.2% / 1.8% respectively year-on-year; 3.0%/12.9%/30.1%/24.6%； 4.8%/17.2%/17.5%/20.7%。 The annual operating expenditure increased by – 7.3% year-on-year.
Investment suggestion: the company 2021e, 2022epb0 73X/0.68X； PE9. 31x / 8.31x (rural commercial bank pb0.76x / 0.70X; pe7.89×7.16x). Based on Suzhou economic zone, the company’s deposit and loan business continues to increase, the contribution of retail business to deposit and loan and revenue continues to improve, and the asset quality is further consolidated. It is recommended to pay attention.
Risk tip: the macro economy is facing downward pressure, and the bank’s operating performance is lower than expected.
