\u3000\u3000 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) (601128)
The event company released the 2021 annual performance express.
The double-digit growth in performance is basically good. In 2021, the company achieved an operating revenue of 7.653 billion yuan, a year-on-year increase of 16.27%; The net profit attributable to the parent company was 2.184 billion yuan, a year-on-year increase of 21.13%; The annualized ROE (weighted average) reached 11.58%, with a year-on-year increase of 1.24 percentage points; The basic EPS was 0.8 yuan, a year-on-year increase of 21.21%. The company’s revenue and net profit maintained double-digit growth, which continued to expand compared with the first three quarters, basically facing the continuation of the good trend.
High credit growth + structural optimization, the development trend of micro loan business is good, which helps to improve the volume and price, the asset side credit growth is bright, and the structure is continuously optimized. By the end of 2021, the company’s total assets were 246.607 billion yuan, an increase of 18.17% over the end of 2020; The total loan was 162.797 billion yuan, an increase of 23.59% over the end of 2021, faster than the total assets; Among them, personal loans accounted for 61.02% of the total loans, an increase of 4.01 percentage points over the end of 2020, and personal operating loans accounted for 39.84% of the total loans, an increase of 2.94 percentage points over the end of 2020. Considering the low market penetration of small and micro loans and strong policy support, the company continues to promote business sinking, increase the proportion of credit loans below 1 million, and compete with other banks, the company’s small and micro businesses face large room for volume and price improvement. Deposits on the liability side grew steadily. By the end of 2021, the company’s total deposit was 182.732 billion yuan, an increase of 15.07% over the end of 2020.
With excellent asset quality and continuous enhancement of risk offset ability, by the end of 2021, the company’s non-performing rate was 0.81%, the same as that at the end of September, down 0.15 percentage points compared with that at the end of 2020, at a low level among listed banks and excellent asset quality. At the same time, the company’s provision coverage has been further improved and its risk offset ability has been continuously enhanced. By the end of 2021, the company’s provision coverage was 531.98%, 46.65 percentage points higher than that in 2021, better than that at the end of the third quarter. The provision is at a high level, which helps to deal with the adverse risks brought by the weak macro-economy and the credit risk exposure of real estate enterprises. At the same time, it has a large profit feeding space.
In August 2021, the company announced that it plans to issue convertible bonds with a cumulative total amount of no more than RMB 6 billion (including RMB 6 billion), which will help further enrich the capital strength, improve the capital adequacy ratio, enhance the ability to resist risks, and consolidate the capital base for the sustainable development of various businesses, Enhance the company’s core competitiveness and achieve the established strategic objectives.
The investment suggestion company adheres to the market positioning of supporting agriculture and supporting small businesses, and has obvious advantages in small and micro finance. The demand for credit business is broad, personal business loans are developing rapidly, and Nim is in the lead. Excellent asset quality, better provision coverage than peers, strong risk offset ability and large profit feeding space. The company carries out small and micro businesses through the combination of IPC + credit factory, effectively controls non-performing risks and helps credit expansion. At the same time, it expands its business space by means of remote branches, rural banks and shares in Zhenjiang rural commercial bank, so that there is room for future performance growth. In combination with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating, bvps7.5 from 2022 to 2023 98 yuan / 8.85 yuan, corresponding to the current share price of pb0.85 yuan 87X/0.79X。
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
