\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 919 Bank Of Jiangsu Co.Ltd(600919) )
Matters:
Bank Of Jiangsu Co.Ltd(600919) released the first quarterly report of 2022. In the first quarter, the company achieved an operating revenue of 17.03 billion yuan, an increase of 11.0% year-on-year, and the net profit attributable to the parent company was 6.58 billion yuan, an increase of 26.0% year-on-year, with an annualized roe15.5% 02%, an increase of 2.31pct over the same period last year, unchanged month on month. The total assets at the end of the period were 2.76 trillion yuan, an increase of 5.6% over the beginning of the year.
Ping An View:
Profits maintained high growth, and the growth rate of medium income fell. The company's net profit attributable to the parent company in the first quarter increased by 26.0% (vs + 30.7%, 2021a) year-on-year, but the growth rate slowed down, but it is still strong. We judge that it is mainly affected by the significant release of provisions, and the provision made by the company in the first quarter decreased by 10.0% (vs-0.5%, 2021a) year-on-year. In terms of revenue, the company's revenue in the first quarter increased by 11.0% (vs + 22.6%, 2021a), mainly driven by the steady increase of net interest income. In terms of structure: 1) the company's net interest income in the first quarter increased by 13.6% (vs + 23.0%, 2021a) year-on-year, maintained a steady growth, and the proportion of revenue in a single quarter increased 2pct to 73%. 2) The company's net fee income in the first quarter increased by 9.8% (vs + 39.8%, 2021a) year-on-year, and the growth rate decreased. We judge that the main reason is the pressure on the company's agency business under the influence of the downturn of the capital market in the first quarter (the company's agency income accounted for 75.4% of the fee income in 21 years), and the proportion of revenue in the middle of a single quarter remained at 11%, which still has room for further improvement.
The interest rate spread rebounded, and the public credit continued to develop. We calculate the company's Q1 single quarter annualized net interest margin of 1.92% (vs 1.83%, 21q4) according to the balance at the end of the initial period. We expect it to be mainly affected by the optimization of the structure caused by the continuous and rapid growth of credit and the continuous improvement of debt cost. In terms of scale, the asset side expanded steadily. The total assets at the end of Q1 increased by 5.6% compared with the beginning of the year, and the loan scale increased by 4.7% compared with the beginning of the year. Among them, corporate loans / personal loans changed by + 13.9% / - 2.3% respectively compared with the beginning of the year, reflecting the strong demand for corporate credit in Jiangsu. On the liability side, the growth of deposits accelerated. Deposits at the end of Q1 increased by 10.5% compared with the beginning of the year, with a year-on-year increase of 13.0% (vs + 11.1%, 21q4). In terms of structure, the rapid growth of retail end was the main driving force, and corporate deposits / personal deposits increased by 6.9% / 14.3% respectively compared with the beginning of the year.
The quality of assets has been improved and the level of provision coverage has been continuously improved. The company's non-performing rate at the end of the first quarter was 1.03%, down 5bp month on month, and the asset quality was further improved. We estimate that the company's Q1 single quarter annualized non-performing generation rate is 0.40%, a year-on-year decrease of 28bp, and the non-performing generation rate remains at a low level in the same industry. In terms of forward-looking indicators, the concern rate of the company at the end of the first quarter was 1.33%, down 1bp month on month. On the whole, the asset quality of the company continued to improve. At the same time, the company's provision has been continuously consolidated. At the end of the first quarter, the provision coverage rate was 330%, the month on month increase was 22pct, the loan allocation ratio was 3.40%, the month on month increase was 7bp, and the risk offset ability continued to improve.
Investment suggestion: be optimistic about the continuous release of the company's location bonus and transformation bonus Bank Of Jiangsu Co.Ltd(600919) is ranked in the first echelon of China City Commercial Bank. Its good location has laid a good foundation for the rapid development of the company's business. In the past two years, with the steady progress of the company's new five-year strategic plan, Bank Of Jiangsu Co.Ltd(600919) on the one hand, it has made solid efforts to cultivate the local market, on the other hand, it has actively promoted the retail transformation, and comprehensively improved its profitability and profit quality, ranking in the forefront of the benchmarking industry. Combined with the company's first quarterly report, we maintain the company's profit forecast for 22-24 years, with corresponding EPS of 1.60/1.91/2.26 yuan and corresponding profit growth rate of 19.6% / 19.7% / 18.4% respectively. At present Bank Of Jiangsu Co.Ltd(600919) corresponds to 0.7x/0.6x/0.5x Pb in years 22, 23 and 24 respectively. We are optimistic about the continuous release of the company's location bonus and transformation bonus and maintain the "recommended" rating.
Risk tips: 1) macroeconomic downturn leads to higher than expected pressure on asset quality of the industry. 2) The decline in interest rates led to a narrower than expected industry interest margin. 3) The increase of cash flow pressure of real estate enterprises leads to the rise of credit risk.
