\u3000\u3000 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) (601128)
Key investment points
Performance overview
Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) 2021 performance express announcement: the net profit attributable to the parent company increased by 21.1% year-on-year, and the growth rate increased by 2.1pc month on month; Revenue increased by 16.3% year-on-year, and the growth rate increased by 3.3pc month on month; Roe was 11.6%, with a year-on-year increase of 1.2%; The non-performing rate was 0.81%, unchanged month on month, and the provision coverage rate was 532%, an increase of 11pc month on month.
Revenue and profit accelerated growth
21a Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) net profit attributable to the parent company was + 21.1% year-on-year, and the growth rate was + 2.1pc month on month; The revenue was + 16.3% year-on-year and the growth rate was + 3.3pc month on month, exceeding market expectations. It is speculated that the main driving factors are the stabilization of interest margin and the scale maintaining a high growth rate. Looking forward to the future, the retail microenterprise strategy and excellent asset quality will strongly support the performance.
Retail transformation continued to advance
Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) credit maintained rapid growth. In 2021, total loans (excluding interest receivable) increased by + 23.6% year-on-year, and the growth rate was basically the same month on month. It is worth noting that in 2021, the proportion of Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) personal loans increased by 4pc compared with the beginning of the year, and the proportion of personal operating loans increased by 3pc compared with the beginning of the year. Looking ahead, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) retail microenterprise strategy promotion and wealth management are expected to drive the rapid growth of revenue.
Stable and good asset quality
At the end of 2021, the Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) non-performing rate remained unchanged at 0.81% month on month, maintaining a low level; The provision coverage increased by 11pc to 532% at a high level, the best level since listing. Looking ahead, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) excellent asset quality and sufficient provision lay the foundation for performance release.
Pay attention to the approval progress of convertible bonds
Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) issued the convertible bond plan on August 16, 2021, and planned to issue no more than 6 billion yuan of convertible bonds. If all shares are converted, according to the static calculation of 21q3 data, the core tier 1 capital adequacy ratio can be increased from 3.11pc to 13.23%, which can effectively supplement capital ammunition and support scale growth. At present, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) convertible bonds are in the approval stage of CBRC, and the subsequent focus will be on the landing node of convertible bonds.
Profit forecast and valuation
Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) revenue and profit accelerated, retail transformation continued to advance, and asset quality was stable and good. It is estimated that the growth rate of net profit attributable to parent company in 22-23 years will be 17.3% / 17.8%, corresponding to bps7.5% 90 / 8.72 yuan. The target price is 9.50 yuan, corresponding to 1.20x Pb in 22 years. The current price corresponds to 22 year pb0 88x, current price space 36%, buy rating.
Risk tip: macroeconomic stall and significant exposure of adverse.
