\u3000\u3000 Bank Of Jiangsu Co.Ltd(600919) (600919)
Performance overview
In 2021, the net profit attributable to the parent company was + 30.7% year-on-year and the growth rate was + 0.2pc month on month; Revenue + 22.6% YoY; ROE12. 6%, yoy + 0.7pc; The defective rate was 1.08%, with a chain comparison of -4bp; The provision coverage rate was 308%, with a chain comparison of + 12pc.
Performance review
1. The profit is much higher than expected. On the basis of the high growth rate in the first three quarters of listed banks, Bank Of Jiangsu Co.Ltd(600919) 2021a profit growth further increased by 0.2pc to 30.7%, which is expected to "defend the title" and exceed market expectations. Judgment is mainly attributed to the continued decline of impairment drag. It is noted that the revenue growth of Bank Of Jiangsu Co.Ltd(600919) 2021a decreased slightly by 2.1pc month on month. It is speculated that it is due to the landing of 2020q4 allotment funds and the corresponding asset investment, resulting in a high base effect. The two-year compound growth rate of revenue was still + 0.4pc to 19.1% month on month, profits continued to improve, and the effectiveness of strategic transformation continued to show. Looking forward to the future, the continuous high growth of profits can endogenously supplement capital and lay a solid foundation for the sustainable growth of subsequent performance.
2. Improve the asset structure. Bank Of Jiangsu Co.Ltd(600919) 2021a loans increased by 1.7% month on month, 0.3pc faster than total assets, and the proportion of loans continued the upward trend since 2021. At the same time, under the retail strategy, it is speculated that the proportion of retail loans will continue to increase, strongly supporting the interest rate spread.
3. Continuous double drop of defects. Bank Of Jiangsu Co.Ltd(600919) at the end of 2021a, the non-performing amount decreased by about 1.6% month on month, and the non-performing rate decreased -4bp to 1.08% month on month. The non-performing assets decreased for four consecutive quarters, and the asset quality improved significantly. In terms of provision, the provision coverage rate at the end of 2021a increased by 12pc to 308% month on month, reaching the best level since listing. Looking forward to the future, the essence of non-performing assets is improving, and the pressure of credit impairment is expected to continue to subside, supporting profitability.
Profit forecast and valuation
It is estimated that Bank Of Jiangsu Co.Ltd(600919) from 2022 to 2023, the net profit attributable to the parent company will increase by 16.20% / 15.49% year-on-year, corresponding to bps11 RMB 37 / 12.61 shares. The current price corresponds to 0.57/0.51 times of Pb valuation. Maintain the target price of 9.20 yuan, corresponding to 0.81x Pb in 2022, and the current price corresponds to 0.57x Pb in 2022, with a current price space of 43%.
Risk tip: macroeconomic stall, substantial exposure of adverse
