\u3000\u3000 Bank Of Nanjing Co.Ltd(601009) (601009)
Events
On January 16, Bank Of Nanjing Co.Ltd(601009) announced that it planned to acquire the controlling interest of Suning consumer finance company.
Actively lay out gold consumption licenses
Suning Xiaojin is jointly invested and established by five companies, Suning.Com Co.Ltd(002024) , Xiansheng zaikang Jiangsu pharmaceutical, Bank Of Nanjing Co.Ltd(601009) , faba bank and Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) hold 49%, 16%, 15%, 15% and 5% shares respectively. If the acquisition is successful, Bank Of Nanjing Co.Ltd(601009) shareholding ratio is expected to rise from 15% to the controlling shareholder. If the acquisition is successful, it will have little short-term impact on Bank Of Nanjing Co.Ltd(601009) business indicators. By the end of 21h1, the total assets of Suning Xiaojin accounted for 0.07% of Bank Of Nanjing Co.Ltd(601009) assets, and the operating revenue accounted for 0.52% of Bank Of Nanjing Co.Ltd(601009) operating revenue.
Consumer finance has broad prospects
The gold consumption market has a wide space, and the gold consumption license can help break through the restrictions on non local exhibition and open new profit growth points. ① Broad market space: according to McKinsey's analysis, the consumer credit market is expected to reach 28.8 trillion yuan in 2025, with an average annual compound growth rate of 15%. ② Breaking through business restrictions: according to the measures for the pilot management of consumer finance companies issued by the CBRC, consumer finance companies are allowed to carry out remote business on the basis of controllable risk. Limited by the expansion of regional banks in other places, Bank Of Nanjing Co.Ltd(601009) has not set up new branches outside the province since 2010. By holding a consumer finance company, Bank Of Nanjing Co.Ltd(601009) is expected to expand its business location and open up new space for business growth.
Breed new profit growth points
① obvious advantages of gold consumption. According to the disclosure of Bank Of Nanjing Co.Ltd(601009) retail transformation and Development Forum in March 21, the asset scale and ROA of Bank Of Nanjing Co.Ltd(601009) consumer money business ranked the top four among 22 major institutions at the end of 2019. ② Improve profitability. Bank Of Nanjing Co.Ltd(601009) the ROA of Xiaojin in 2019 is about 2%, much higher than the overall ROA level (0.96% in 2019). If Suning Xiaojin is successfully controlled, the Bank Of Nanjing Co.Ltd(601009) Xiaojin license will be supplemented, and the business capacity can be injected into the subsidiary, the business growth logic will be further straightened out, and the consumer finance business is expected to increase rapidly to form a new profit growth pole.
Profit forecast and valuation
Bank Of Nanjing Co.Ltd(601009) the consumer money license is expected to be won and the retail strategy will be the next city. It is estimated that the growth rate of net profit attributable to parent company in 21-23 years will be 22.4% / 18.2% / 18.4%, corresponding to bps10.5% 90 / 12.29/13.93 yuan. Maintain the target price of 16 yuan, corresponding to 22 years of PB1 30x。 The current price corresponds to 22 year pb0 77X, current price space 69%, buy rating.
Risk tip: macroeconomic stall, substantial exposure of non-performing assets, and the promotion of equity acquisition is less than expected.
