\u3000\u3000 Bank Of Jiangsu Co.Ltd(600919) (600919)
Key investment points
Summary of express: 1. The performance maintained high growth and the growth sustainability was strong. The logic was gradually fulfilled: the company's annual revenue increased by 22.6% year-on-year and net profit increased by 30.7% year-on-year. The revenue side achieved a high growth of 22.6%, which is better than that of most peers, which is a reflection of the company's excellent active management ability: Bank Of Jiangsu Co.Ltd(600919) the year-on-year growth rate of total asset scale is only 12%. It can be seen that the high growth of revenue side is not completely driven by scale, but also includes the year-on-year positive contribution of net interest margin realized by the optimization of the company's structure; And the high growth contribution of non interest income. 2. The net interest margin in the fourth quarter is expected to be stable month on month. 4q21's revenue increased by 5.7% month on month, of which the total assets increased by 1.4% month on month, and the company's net interest income accounted for about 73% of the revenue. Therefore, we expect that the company's net interest margin in the fourth quarter can remain stable, without a drag on the revenue end. 3. Regional financing demand is strong, and the scale of new loans in the whole year far exceeds 20 years. The new loans in the whole year were 19.6 billion yuan, an increase of 37.5 billion yuan over the new scale in 20 years, indicating strong regional financing demand. Deposits are not weak. In the whole year of 21, the scale of new deposits increased by 145 billion, an increase of 24.2 billion over the same period last year. In the whole industry, there was great pressure to attract deposits in 21 years. It is a very bright achievement that the company can achieve year-on-year increase. 4. Through years of steady operation, the company has gradually cleared out the bad, the current stock risk has been clearly cleared, and the incremental risk will benefit from the regional economy and will continue to be better than the market expectation. The non-performing balance and ratio decreased both. The NPL continued the trend since the beginning of the year, and the NPL rate continued to decline 4bp to 1.08% month on month at the end of 2021, the best level since 2013. The margin of safety has increased significantly. With the improvement of asset quality, there is room for future provisions to release profits. By the end of 2021, the provision coverage rate was 307.7%, a significant increase of 12 percentage points month on month; The loan allocation ratio was 3.32%, up 2bp month on month.
Investment suggestion: high growth, strong sustainability and high cost performance. Company 2022e, 2023epb0 55X/0.49X； PE4. 37x / 3.76x (City Commercial Bank pb0.74x / 0.66X; pe6.39x / 5.67x). Bank Of Jiangsu Co.Ltd(600919) has built excellent business and organizational structure, stable management and cultivated a steady, pragmatic and enterprising corporate culture. Excellent business organization structure and corporate culture can ensure that this bank deeply rooted in high-quality areas can become an excellent bank in the medium and long term.
Risk tip: the economic downturn exceeded expectations and the company's operation was less than expected.
