\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 128 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) )
Performance summary: Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) 2022 first quarter net profit increased by 23.4% year-on-year, and operating revenue increased by 19.3% year-on-year; The cost income ratio was 37.92%, down 2.30 percentage points from the same period last year. At the end of the quarter, total assets increased by 8.97%, loans increased by 6.34% and deposits increased by 11.8% compared with the beginning of the year. The non-performing rate at the end of the quarter was 0.81%, the provision coverage rate was 532%, the allocation loan ratio was 4.32%, and the core tier 1 / capital adequacy ratio was 10.01% / 11.74%. The company’s first quarter ROA1 10%, a year-on-year increase of 3bp; ROE13. 05%, a year-on-year increase of 1.36 percentage points Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) 1 quarterly performance maintained the first tier of listed banks, with strong growth in deposits and loans and improved interest margin year-on-year. With the expansion of the company’s customers to small and downward areas, the contribution of very familiar areas will increase in 2021. Benefiting from the regional economy, the company’s unique small and micro business playing method and strict risk control, the company’s asset quality advantage has been maintained. In our core recommendation portfolio, the company reiterates its optimism and focuses on recommendation.
Key points supporting rating
The net profit in the quarter of 202135. In the first quarter, the net interest income increased by 24.0% year-on-year, and the growth rate is expected to be in the forefront of listed banks. Under the background of relatively stable scale growth, it is expected to benefit from the year-on-year improvement of interest margin. The revenue in the first quarter increased by 19.3% year-on-year, which was further higher than that in 2021 (+ 16.3%, YoY). The year-on-year decline of the superimposed cost income ratio drove the profit before provision in the first quarter to achieve a year-on-year increase of 23.9%.
In the first quarter, the interest margin improved year-on-year, and the growth of deposits and loans was strong
At the end of the first quarter, the loan increased by 6.34% over the beginning of the year. For example, the loan of RMB 3.06 billion plus return increased by 8.22% over the beginning of the year, with strong growth. After adding back the circulation scale, corporate / retail loans increased by 10.7% / 3.3% respectively compared with the beginning of the year. In the first quarter, loans of less than 1 million yuan and 1-10 million yuan accounted for 41.0% and 34.4% respectively, down 0.83 and 0.40 percentage points from the beginning of the year. In the first quarter, interbank assets and securities investment increased by 18.7% and 19.7% over the beginning of the year.
The interest margin improved continuously in the first quarter, widening to 3.09% compared with 2021 (3.06%), which was significantly improved year-on-year. From the marginal point of view, it is expected that the interest margin in the first quarter will decline month on month compared with the fourth quarter of 2021, which is mainly affected by the asset side. However, the company’s debt end cost rate is expected to remain relatively stable. According to our calculation, the debt end cost rate in the first quarter decreased by 2bp compared with the fourth quarter of 2021.
Valuation
We maintain the company’s forecast of EPS of 0.97/1.15 yuan in 2022 / 2023. At present, the corresponding share price of Pb in 2022 / 2023 is 1.04x/0.95x, maintaining the overweight rating.
Main risks of rating
The epidemic situation has been repeated, the export demand has weakened, and the economy has fallen more than expected; Regulatory control exceeded expectations.
