\u3000\u3000 Bank Of Jiangsu Co.Ltd(600919) (600919)
The event company released the 2021 annual performance express.
Revenue and net profit increased rapidly, leading listed banks. In 2021, the company achieved an operating revenue of 63.771 billion yuan, a year-on-year increase of 22.58%, and the net profit attributable to the parent company was 19.694 billion yuan, a year-on-year increase of 30.72%; Roe (weighted average) was 12.6%, with a year-on-year increase of 0.69 percentage points; Dilute eps1 21 yuan, flat year-on-year. The company’s operating income maintained double-digit growth, and the growth rate of net profit reached a new high in recent years. It is expected that it is mainly affected by the rapid growth of net interest income and intermediate business income and the easing of the pressure on impairment provision. Combined with the data of the third quarterly report, the overall performance of the company is expected to continue to lead the listed banks.
The assets and liabilities expanded steadily, the structure was optimized, the yield was improved and the interest margin was improved. By the end of 2021, the company’s total assets were 2618.390 billion yuan, a year-on-year increase of 12.00%; The balance of various loans was RMB 140.172 billion, with a year-on-year increase of 16.52%. The growth momentum was strong, accounting for 53.47% of the total assets, with a year-on-year increase of 2.07 percentage points. The company steadily promoted the transformation of retail strategy, optimized the structure, improved the return on the asset side, and further improved the interest margin. At the same time, the growth trend of debt side deposits is good. By the end of 2021, the balance of various deposits of the company was RMB 1451.216 billion, a year-on-year increase of 11.10%.
The asset quality was optimized and the risk offset ability was enhanced. By the end of 2021, the company’s non-performing rate was 1.08%, down 0.24 percentage points compared with the end of 2020, which was significantly improved and decreased year by year in the six years since listing. In addition, the provision coverage was further improved and the risk offset capacity was enhanced. By the end of March 2021, the company’s provision coverage was 307.22%, an increase of 51.32 percentage points over the end of 2020, and has increased year by year in the six years since its listing.
The investment suggestion company is deeply engaged in the economically developed areas of Jiangsu, with rich financial resources and broad development prospects. It has obvious service advantages in small and micro enterprises and manufacturing industry, and a number of business indicators rank first in the province. On the asset side, the credit supply continues to increase and the structure is optimized, which helps to improve the interest margin; The intermediary business agency business grew rapidly, the wealth management business developed well, and the profit space was thickened. We accelerated the application of financial technology, implemented the intelligent financial evolution project, and comprehensively enabled business development and operation management. Combined with the company’s fundamentals and stock price elasticity, we give a “recommended” rating. From 2021 to 2023, BVPs was 11.4/12.77 yuan, corresponding to the current stock price Pb of 0.58x/0.52x.
The risk indicates that the macroeconomic repair is not as expected, resulting in the risk of deterioration of asset quality
