Nanjing Bank (601009) Company Dynamics Review: Steady Performance and Unsurpassed Growth
On August 1, the company revised the private placement plan, and the number of issued shares did not exceed 15.
2.5 billion shares, raising less than 116.
1.9 billion; On August 2, the Bank of Nanjing released a performance report, achieving net profit attributable to mothers in the first half of 201968.
79 ppm, an increase of 15 in ten years.
1. The quality of revenue and profit growth is high.
(1) The company’s operating income in 1H19 increased by 23.
3%, the growth rate is among the mid-to-upper level among the city commercial banks that have disclosed the interim report performance report;
3pct, mainly due to the base effect, last year was low and then high, and this year was high and low, consistent with industry performance; (2) 1H19 net profit increased by 15.
1%, the growth rate was the same as 1Q19, and among the city commercial banks, those with higher profit growth rates (lower than Hangzhou, Ningbo, Chengdu, higher than Jiangsu, Shanghai, Changsha, Xi’an, Zhengzhou);, The company’s total assets increased by 8 compared with the beginning of the year.
5%, ranking second among the eight banks that released the newsletter; among them, loans increased by 12 earlier.
5%, loans to total assets continued to rise, 1H19 has exceeded 40%.
2. Asset quality and provisions have remained stable.
Since 2H17, except that the company’s non-performing rate has increased by 3bps in 3Q18, the other quarters’ non-performing rates have been flat and are currently 0.
The non-performing rate of 89% has been maintained for 3 quarters, which is only slightly higher than 0 of Bank of Ningbo.
78%, long-distance level of other urban businessmen.
The company’s 1Q19 provision coverage ratio declined due to the IFRS9 switch, which reduced the provision for on-balance sheet 杭州桑拿网 loans, but also made more provisions for non-credit assets and off-balance sheet assets in 1Q19. The decline in 1Q19 loan provision coverage was a one-off, Not a trend; 2Q19 company’s provision coverage ratio remained flat month-on-month, still at 415.
5%, whether the company’s non-performing rate has remained stable since 4Q18, or the provision coverage rate has stabilized since 2Q19, the average is a stable performance of the company’s asset quality and provision level.
3. The capital adequacy ratio has improved and is about to be replenished.
(1) The company’s 2Q19 core tier 1 capital adequacy ratio was 8.
87%, an increase of 0 from the end of the previous quarter.
The capital adequacy ratio of Bank of Nanjing has improved significantly since 2018. Through the fixed increase, the capital strength has been further consolidated. According to the static calculation of 19Q1, the core capital adequacy ratio will be increased by 1 pct to 9.
9%; (2) Non-second shareholders are not optimistic about the company’s development.
On August 2, Nanjing Securities issued an announcement that Zijin Investment will subscribe for its non-public offering of shares with a total amount not exceeding 3 trillion.
Subject to the regulatory restriction that “non-financial institutions as the promoters of commercial banks’ legal entities, whose equity investments do not exceed 50% of the company’s net assets in principle,” Zijin Investment may choose to subscribe for 300 million shares of Nanjing Securities.Its equity investment ratio is close to 50% of its net assets, so it chose to withdraw from the fixed increase of Nanjing Bank.
Therefore, the withdrawal of Nanjing Bank’s second largest shareholder from the fixed increase plan does not mean that it is not optimistic about the company’s future development.
Investment suggestion: The company’s PB is estimated to be 43% discounted from the previous Ningbo Bank. The market’s biggest worry is that the asset quality and capital replenishment are both falsified.
After a slight increase of 3bp in 3Q18, the company’s non-performing rate has been flat for 3 consecutive quarters, and the quality of assets has remained stable. The issue of capital replenishment has been re-proposed after the decision on whether to increase growth last year. After the completion of the growth of 11.6 billion, the future scaleExpansion is still backed by capital, and growth logic will not be disrupted.
It is expected that the company’s profit growth rate will pick up year by year in the next three years, and will increase by 15% / 16% / 17% respectively in 2019-2021. It is estimated that the discount is expected to narrow and it will cover for the first time.
Risk warning: The quality of regional assets deteriorates, and the set growth rate is less than expected.