\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Highlights of financial report: 1. The quality of revenue growth is solid, and the performance maintains high growth: revenue + 11% and profit + 26% year-on-year. Among them, the net interest income was + 13.6% year-on-year; Non interest income + 4.3% year-on-year. The growth rate of interest income is better than that of comparable peers, and the growth quality is higher The year-on-year growth rate of the company’s total net interest margin is only 10 percent, which is driven by the optimization of the company’s scale. 2. 1q22 net interest income bucked the trend and increased by 8.2% month on month, driven by both volume and price. Among them, the scale of interest bearing assets increased by 5.4% month on month, and the net interest margin at the annualized time point of a single quarter was 1.89%, an increase of 8bp month on month. The month on month rise of net interest margin is jointly driven by the negative asset side: the yield on the asset side has increased, while the cost on the liability side has decreased. The return on assets rose 4bp to 4.22% month on month. It is expected that this is mainly due to the low base of Q4 last year: the proportion of new notes in Q4 last year was as high as 149%, which reduced the asset side yield in Q4 to a certain extent; The resumption of relatively high-yield credit in the first quarter of this year is expected to form a certain support for the month on month rise of asset side yield. The interest payment rate of interest bearing liabilities decreased 4bp to 2.53% month on month. It is expected that the interest rate and structure will be jointly driven. The proportion of relatively low-cost deposits increased month on month. The cost of active debt is still in the downward channel. 3. Assets and liabilities: good credit growth, especially corporate loans. Total loans increased by 15.4% year-on-year. In the first quarter, the scale of new loans was 65.4 billion, a slight decrease of 3.4 billion compared with the same period last year. Among them, the growth of new public investment is better. In the first quarter, the newly added corporate, retail and bills were 101.2 billion, – 13.2 billion and – 22.6 billion respectively, with changes of + 12.1 billion, – 27.4 billion and + 11.9 billion compared with the same period last year. Deposits made a good start and personal deposits performed well. Total deposits increased by 13% year-on-year. The increase in deposits in the first quarter was much higher than that in the same period last year, with an increase of 152.3 billion, an increase of 38.9 billion over the same period last year; The scale of new loans is far too large. Corporate and personal deposits, deposits and Treasury deposits increased by 63.6 billion, 60.6 billion and 28.2 billion respectively, an increase of 20.8 billion, 8.6 billion and 9.4 billion over the same period last year. 4. Asset quality: the burden of stock has been removed and the margin of safety has been greatly improved. Through years of steady operation, the company has gradually cleared the bad assets. At present, the stock risk has been clearly cleared. The incremental risk benefits from the regional economy and will continue to be better than the market expectation. The non-performing balance and non-performing ratio maintained double decline for five consecutive quarters, and the non-performing ratio continued to decline sharply 5bp to 1.03% month on month, the best level since 2012. The company’s 1q22 annualized NPL became 0.4%, down 39bp month on month, and the absolute value level was low. From the perspective of future non-performing pressure, the proportion of concerned loans is flat at 1.34%, which is at a historical low, and the future non-performing pressure is small. The margin of safety has increased significantly. With the improvement of asset quality, there is room for future provisions to release profits. 1q22 provision coverage was 330%, up 22 percentage points month on month; The loan allocation ratio was 3.39%, up 6BP month on month.
Insufficient financial report: the growth rate of net non interest income decreased, increased by 4.3% year-on-year, decreased by 17.3 points compared with the growth rate in 2021 (2021 year-on-year + 21.6%), and the growth rate of handling charges and net other non interest income weakened marginally. The net handling fee increased by 9.8% year-on-year (vs + 40% year-on-year in 2021). It is expected that it is mainly due to the decline in the income of consignment business caused by the downturn in the capital market. Net other non interest income increased by 0.6% year-on-year, and the growth rate decreased in 2021 (vs2021, 11.5% year-on-year). Other non interest income was weak in the first quarter, mainly due to the drag of exchange gains and losses.
Investment suggestion: high growth, strong sustainability and high cost performance. Company 2022e, 2023epb0 64X/0.56X； PE4. 61x / 3.91x (City Commercial Bank pb0.73x / 0.65x; pe6.07x / 5.35x) Bank Of Jiangsu Co.Ltd(600919) has built an excellent business and organizational structure, and a stable management has 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.
Note: according to the first quarterly report of 22 years, we fine tune the profit forecast and predict that the net profit attributable to the parent company from 2022 to 2023 will be 24.7 billion and 29 billion (the previous values were 23.9 billion and 28.5 billion).
Risk tip: the economic downturn exceeded expectations and the company’s operation was less than expected.
