Since January, the banking sector has achieved a “red start”, with a cumulative increase of 4.43% in six trading days.
Since 2022, bank stocks have closed up red for three consecutive days, or related to the good results at the beginning of the year.
On January 10, Industrial Bank Co.Ltd(601166) (601166. SH), Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) (603323. SH) both disclosed the performance express, and the net profits of the two banks increased by more than 20%.
On January 11, Industrial Bank Co.Ltd(601166) led the plate, with the highest intraday increase of 4.51%, and finally closed up 3.73%, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) increased by 1.72%. On the overall disk, the wind bank index closed up 1.14% on the same day, and 31 stocks were red, of which Bank Of Chengdu Co.Ltd(601838) (601838. SH) closed up 5.09%, ranking first, and only 6 sectors fell.
“Bank stocks protect the market!” Some Industrial Bank Co.Ltd(601166) investors posted excitedly.
At the same time, good performance gave birth to the enthusiasm of the organization. From January 10 to 11, Zheshang Securities Co.Ltd(601878) , Shenwan Hongyuan Group Co.Ltd(000166) , Tianfeng Securities Co.Ltd(601162) rated Industrial Bank Co.Ltd(601166) as “buy”, while China Merchants Securities Co.Ltd(600999) and Ping An Securities rated “strongly recommended”; Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) get Zhongtai Securities Co.Ltd(600918) , Zheshang Securities Co.Ltd(601878) quick comments.
Net profit growth exceeded 20%
According to the performance express, Industrial Bank Co.Ltd(601166) achieved an operating revenue of 221.2 billion yuan in 2021, a year-on-year increase of 8.91%; The net profit attributable to shareholders of the parent company was 82.680 billion yuan, a year-on-year increase of 24.10%.
In contrast, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) has a smaller volume. Its operating revenue in 2021 was 3.821 billion yuan, a year-on-year increase of 1.81%; The net profit attributable to the shareholders of the parent company was 1.148 billion yuan, a year-on-year increase of 20.72%. In terms of growth rate, both banks achieved net profit growth of more than 20%.
In terms of non-performing loans, Industrial Bank Co.Ltd(601166) the balance of non-performing loans was 48.714 billion yuan, a decrease of 942 million yuan over the end of the previous year; The non-performing loan ratio was 1.10%, down 0.15 percentage points from the end of the previous year. The non-performing loan ratio was 1.00%, down 0.28 percentage points from the beginning of the year.
In terms of total assets, by the end of 2021, Industrial Bank Co.Ltd(601166) had total assets of 8.5 trillion yuan, second only to China Merchants Bank Co.Ltd(600036) (600036. SH) (8.9 trillion yuan) among listed banks; While Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) belongs to local small banks, with total assets of 153.4 billion yuan, which is at the end of the queue of listed banks.
In terms of provision rate, Industrial Bank Co.Ltd(601166) and Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) provision coverage rates were 268.73% and 411.10% respectively, an increase of 49.90% and 105.79% respectively over the end of the previous year.
In addition to the above two banks, Bank Of Chengdu Co.Ltd(601838) (601838. SH) had previously issued a performance pre increase report on January 5. It is expected that the net profit attributable to shareholders of Listed Companies in 2021 (compared with the same period of last year) will increase by 1.085 billion yuan to 1.507 billion yuan, a year-on-year increase of 18% to 25%.
On the morning of January 11, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) relevant people replied to times finance and economics, “our loan business in Suzhou has grown relatively well, and the credit demand has returned to the level before the epidemic.” At the same time, times finance called Industrial Bank Co.Ltd(601166) for questions related to employment performance. As of press time, no reply has been received.
It is worth mentioning that on January 5, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) announced the convertible bonds to shares. As of December 31, 2021, the cumulative number of Sunong convertible bonds to shares was 191 million, accounting for 13.19% of the company’s issued common shares before the conversion. However, on January 11, when the positive stocks rose, Sunong convertible bonds (113516) closed down 0.99%.
At the same time, Industrial Bank Co.Ltd(601166) also announced the issuance results of convertible bonds with a scale of 50 billion yuan recently, and its original ordinary shareholders were given priority of 22.7 billion yuan (22.71 million hands), accounting for about 45.43% of the total issuance. However, the issue of convertible bonds was abandoned by investors, with an amount of 390 million yuan.
Combined with the previous announcement of Industrial Bank Co.Ltd(601166) , the online winning rate of this convertible bond issuance is 0.0985%. Yu Hua (a pseudonym), a successful shareholder, told times finance and economics, “the winning rate is too high. Basically, you can win as soon as you apply.” Some investors said in the stock bar, “just make a meal and wait for the listing!”
Bank stocks open “New Year’s red”
From the perspective of the secondary market, since the new year, despite the poor performance of the market, the wind bank index has achieved “red start of the year”, with a cumulative increase of 4.43% in six trading days, only falling on January 6.
Among the above three banks, Bank Of Chengdu Co.Ltd(601838) led the increase in the month, reaching 15.25%; Industrial Bank Co.Ltd(601166) and Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) increased by 12.39% and 9.03% respectively. In addition, Bank Of Jiangsu Co.Ltd(600919) (600919. SH) and Postal Savings Bank Of China Co.Ltd(601658) (601658. SH) increased by more than 10%.
Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) told times finance, “our current valuation is relatively low, and we still hope that the stock price will rise slowly.” The person also said that after the new chairman took office last September, he increased his holdings of shares, and the company is also calling on senior executives to increase their holdings recently.
It is noteworthy that recently, northbound funds continued to buy bank stocks. According to China stock market news, as of January 10, the stock market value of northbound capital holding banks was 194.6 billion yuan, and the market value of increased bank holdings in recent five trading days reached 4.633 billion yuan, an increase of 2.51%.
On a single day, the top three China Merchants Bank Co.Ltd(600036) (600036. SH), Postal Savings Bank Of China Co.Ltd(601658) (601658. SH), Ping An Bank Co.Ltd(000001) (00000 1. SZ) increased their holdings of 7.29 million shares, 27.32 million shares and 5.42 million shares respectively on January 10, with an increased market value of 360 million yuan, 152 million yuan and 93.07 million yuan; Among them, Ping An Bank Co.Ltd(000001) obtained the largest increase in market value in recent five trading days, reaching 706 million yuan.
How do smart banks increase their capital in January?
Times finance found that many securities companies are optimistic about this.
Huatai Securities Co.Ltd(601688) believes that the good performance of the banking sector in January mainly depends on several factors. “First, performance release. Some listed banks disclosed their performance express in January, which led the banking sector to achieve excess returns relative to the Shanghai stock index under better performance expectations. Second, policy catalysis. Important meetings such as the central economic work conference are held in December every year. There are economic growth pressures in some years, and the market has strong expectations for loose monetary policy and active fiscal policy The business environment of the bank is expected to improve. “
Huatai Securities Co.Ltd(601688) also pointed out that in the process of fund style switching, the banking sector has a certain defensive attribute. In January, institutional funds opened a new round of assessment cycle, and some funds were allocated to the banking sector.
After the rising market, what factors should be considered in the allocation of bank stocks?
In the Research Report on January 10, the Citic Securities Company Limited(600030) bank team pointed out that under the recovery of the banking sector, we should focus on two types of banks. First, for high-quality banks with strong profitability, their valuation premium is expected to continue; The second category is improvement banks, mainly those with current medium and undervalued value and revaluation range of stock price, and pay attention to whether the income and provision end are stable and sufficient.
(source: times Finance)
