Bank Of Nanjing Co.Ltd(601009)
Events
On April 20, 2022, Bank Of Nanjing Co.Ltd(601009) held a performance presentation meeting for the year 2021 and the first quarter of 2022.
Retail play is upgraded and AUM is expected to increase
① retail credit turns into three wheel drive: Retail Credit turns from two wheel drive to the troika drive of housing, consumption and Operating Loans (New), which is expected to further increase the proportion of retail business revenue. Specifically, Bank Of Nanjing Co.Ltd(601009) personal mortgage loans accounted for 10.4% by the end of 2021, which is far from the regulatory requirements (17.5%); Consumer finance is expected to benefit from the acquisition of Suning Xiaojin holding equity and realize rapid business development; In May 2021, the “xinkuai” personal business loan was officially launched, and the launch of new products will contribute to new growth points.
② AUM growth drives wealth development: Bank Of Nanjing Co.Ltd(601009) plans to increase retail aum100 billion yuan in 2022, with a growth rate of about 2pc to 18% compared with 2021. At the same time, 2022q1 Bank Of Nanjing Co.Ltd(601009) retail AUM has achieved an increase of 45 billion yuan, and the effect of retail transformation has been further demonstrated.
③ private banks help with comprehensive financial services: Bank Of Nanjing Co.Ltd(601009) actively grasp the outlet of wealth management, raise private banks to the first level Department of the head office, implement the comprehensive business model of “commercial bank + investment bank + trading bank + private bank”, strengthen public-private linkage, and provide comprehensive financial services for the enterprise itself, company executives and employees.
Corporate structure adjustment, enabling business development
① optimization of customer management department structure: the company’s financial sector has set up key customer department and institutional customer department to promote the improvement of customer value; The function of the small enterprise department was reformed from a simple credit department to a customer service department for small and medium-sized enterprises, managing the development of more than 100000 non loan households in the bank. The contribution of structural adjustment has achieved initial results. In 22q1, the small enterprise department added 51.3 billion yuan of new deposits, accounting for 36% of the total new deposits.
② transaction bank focuses on three major businesses: in the first quarter of 2022, Bank Of Nanjing Co.Ltd(601009) transaction bank department established three secondary departments, namely international business department, supply chain finance department and cash management department. The three departments correspond to the three main business lines. The business direction of transaction banking is more focused, and the implementation of the strategy is expected to accelerate. In 2022q1 Bank Of Nanjing Co.Ltd(601009) .
The network expansion is accelerated, and the personnel are greatly supplemented
① in terms of layout ideas, realize the full coverage of counties in Jiangsu Province Bank Of Nanjing Co.Ltd(601009) plans to add 100 to 300 outlets by the end of 2023 to open the space for asset growth. 15 new outlets will be set up in 2021, and 47 outlets are planned to be set up in 2022. The establishment speed of outlets will be accelerated. The newly added outlets are mainly distributed in Jiangsu Province. According to the settings in the East, West, North and south, all counties in the province are fully covered, and two or more outlets are set up in developed counties.
② in terms of personnel expansion, it is planned to increase 2000 people in 2022 Bank Of Nanjing Co.Ltd(601009) plan to allocate 15 people in one network and recruit them through school recruitment and social recruitment. Personnel expansion can meet the needs of new outlets, better serve retail and small and micro businesses, and improve the capacity of outlets.
Profit forecast and valuation
The 20% growth trend of annual revenue and profit in 2022 is expected to continue, mainly due to: ① the strength of retail credit supports the stabilization and improvement of interest margin; ② Optimize the corporate structure and release the momentum of development; ③ Speed up the expansion of outlets to drive the growth of scale; ④ Excellent investment ability and strong contribution to revenue. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will increase by 22.31% / 20.14% / 20.13% year-on-year, corresponding to bps12.5% 33 / 14.04/16.11 yuan shares. The current price corresponds to 0.95/0.83/0.73 times of Pb valuation. Maintain the target price of 16.00 yuan / share, corresponding to 22-year pb1.00 yuan 30 times, the current price corresponds to 22 years pb0 95 times, 37% of the current price space.
Risk tip: macroeconomic stall and substantial exposure of adverse.
