\u3000\u3000 Bank Of Suzhou Co.Ltd(002966) (002966)
Key investment points
Summary of express: 1. The year-on-year growth rate of net profit attributable to parent company exceeded 20%. The revenue growth was stable and upward, with a year-on-year growth rate of 4.5%. The net profit continued to maintain the upward trend. Under the background of stable provision provision, the net profit attributable to the parent increased by 20.6% year-on-year. 2. Loans increased steadily and rapidly, the margin of deposit growth widened, and the structure was optimized. Loans increased by 2.0% month on month and 13.7% year-on-year; The proportion of loans in total assets increased by 0.3pct to 47.2% month on month (MOM) in the third quarter, and the asset structure was steadily optimized. Deposit 4q increased by 1.9% month on month, with a year-on-year growth rate of 11.3%. The proportion of deposits in total liabilities remained stable. 3. Asset quality improved month on month and safety margin further improved. The non-performing rate decreased 6BP to 1.11% month on month, the best level since the end of 2014. The coverage rate was 423.6% in 2021, 13.2pct higher than 3Q. The loan allocation ratio was 4.70%, down 10bp from 3Q.
Investment suggestion: 2021e, 2022e Pb 0.71x/0.65x; PE 7.37x/6.96x (City Commercial Bank Pb 0.81x/0.72x; PE 7.04x / 6.25x), the company is deeply rooted in Suzhou, and the structure of the business division is unique. Relying on the qualification of the host bank of citizen card, build a perfect system for benefiting the people, obtain a stable retail customer base, and continue to deepen the retail strategy. The intermediary business shows a good development momentum, and the income from business such as customer financing is growing rapidly. The asset quality remained excellent, the non-performing rate decreased steadily, the pressure on asset quality weakened in the future, and the safety margin was high. The future transformation deserves attention, and it is recommended to keep track.
Note: according to the performance express, we fine tune the profit forecast and predict that the revenue and net profit attributable to the parent company in 2022-2023 will be 12.543/14.45 billion and 3.285/3.735 billion (the previous values were 13.044/15.022 billion and 3.469/3.948 billion).
Risk tip: the macro economy is facing downward pressure, and the bank's operating performance is lower than expected
