\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 128 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) )
Key elements of the report:
On April 23, 2022, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) released the performance report for the first quarter of 2022.
Key investment points:
In the first quarter, the revenue increased by 19.3% year-on-year, and the net profit attributable to the parent increased by 23.38% year-on-year: on the income side, the net interest income increased by 23.97% year-on-year. The cost income ratio was 37.92%, which continued to be optimized.
The recovery of net interest margin and the contribution of scale factors jointly promoted the rapid growth of net interest income: the net interest margin rose 3bp to 3.09% month on month in the first quarter. The company’s net interest margin performance was better than our previous expectations. According to our judgment, or due to the effective control of deposit end cost, it has a large positive contribution to the net interest margin. In terms of scale, total loans increased by 6.34% and total deposits increased by 11.78% compared with the beginning of the year.
In terms of loan investment, corporate loans at the loan end increased significantly in the first quarter: corporate loans increased by 10.4% in the first quarter, while retail loans increased by 3.1%. We expect that due to seasonal factors, the growth rate of personal loans will increase in the future, which will help to maintain the stability of asset side yield.
Higher provisions provide better support for performance growth: the non-performing rate in the first quarter of 2022 was 0.81%, unchanged from the beginning of the year. The provision coverage rate reached 532.7%, which remained high and had a strong ability to offset risks. The current stable asset quality is superimposed with sufficient provisions, and the subsequent non-performing assets and provision pressure are less, forming a good support for the sustained growth of future performance.
Profit forecast and investment suggestions: the company’s performance increases rapidly, focuses on small and micro businesses, and widens the whole business scope through misplaced competition. The EPS forecast for 2022 / 23 is 0.98 yuan and 1.16 yuan, and the corresponding net assets per share are 7.86 yuan and 8.79 yuan respectively. According to the closing price of Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) A shares on April 22, 8.16 yuan, corresponding to 1.04 times and 0.93 times of Pb in 2022 and 2023 respectively, maintaining the overweight rating.
19. Affected by the global economic crisis, the assets of vid-19 are significantly lower than expected, resulting in the recovery of vid-19
