Yu Nong Commercial Bank (601077) New Shares Report: First A + H Shares Listed Rural Commercial Bank Structure Optimization and Adjustments Continue
Chongqing Rural Commercial Bank is the first rural commercial bank listed in the country with “A + H” shares.
As of 2018, 1 branch, 42 sub-branches, and 1772 branches were allowed. With the help of the government, it has developed into a financial institution with special management, technological innovation, and product diversification.
Chongqing’s location advantage is obvious, and the process of financial internationalization is accelerating.
The company is deeply rooted in Chongqing and has a geographical advantage in Chongqing, serving 80% of Chongqing’s population. The market share of small and micro products is high in Chongqing.
Analysis of the company’s profitability: 1. The company’s revenue growth in recent years has been generally weak among comparable banks, and the growth rate is lower than the overall level of listed city commercial banks and rural commercial banks in the western region.
The growth rate of net profit was a low point in 2018, and the inflection point in 1H19 increased 18 years in the upward direction.
9%, the growth rate is higher than comparable peers.
2. ROA and ROE are higher than the overall level of rural commercial banks and slightly higher than the average level of western banks.
The overall ROA of Yunong Commercial Bank is at a relatively stable level, and the ROA of 1H19 is 1.
22%, the best level since 杭州夜网 2015 and the highest among comparable banks.
3. From the analysis of profitability DuPont, the level of net interest income and middle income of Yunong Commercial Bank is significantly higher than comparable peers. Although there is a certain margin, it still supports the company’s ROA at a high level in the peer.
At the same time, from the perspective of the leverage ratio, the company’s leverage ratio is higher than the average level of city commercial banks, and ROE will be higher than comparable city commercial banks.
Net interest income in 1H19 achieved a breakthrough rebound on a low base, mainly due to the size factor.
From the expansion of scale and interest spread, changes in net interest income are mainly affected by the size of interest-earning assets. From the perspective of price trends, interest spreads continue to occur.
By decomposing 杭州桑拿 interest margins, the asset-side rate of return of Yunong Commercial Bank has certain advantages in comparable banks.
1) Asset-side yield: The restructuring of Yunong Commercial Bank actively adjusted the asset structure and increased the proportion of high-yield credit, resulting in a gradual rise in interest-earning asset yields from 2016 to the highest in 20184.
7%, but 19 long-term loan interest rates have declined, dragging down interest-earning asset yields to 4.
2) Debt-end interest payment rate: Under the situation that market competition intensified in 2018 and the average debt cost of listed banks improved and increased, Yu Nong Commercial Bank’s upward compensation cost was smaller than that of its western counterparts, and interest-bearing compensation payments decreased in 1H19.
31%, a slight increase of 1bp compared to 2018.
Asset-liability structure: 1) Asset-side: The growth rate of interest-earning assets has a range of interest rate changes in 2018, mainly due to contraction and pressure drop in the scale of bond investment, and the growth rate of loans has continued to expand.
From a structural point of view, the proportion of loans and bond investments is high, the proportion of loans has steadily increased, and the assets of the same industry have declined steadily.
In addition, loans to companies are mainly concentrated in manufacturing, leasing, commerce, and water conservancy and public facilities. The proportion of loans for expanding manufacturing has declined, and areas with relatively high NPL ratios such as water conservancy, environment, and public facilities management, as well as leasing and business.Emerging loans such as service industry.
Personal loans are mainly based on mortgages and consumer business loans. Credit card loans account for a relatively low proportion and are decreasing year by year.
2) Resistor side: The growth rate of the interest-bearing debt ceiling is also the lowest point in 18 years. 1H19 achieved restorative growth, which was mainly affected by the increase in value-added growth and pressure drop from the same industry.
From a structural point of view, the proportion of core debt has increased, and it has actively refused to tilt to issuing bonds, and has a high degree of dependence on interbank resistance.
The degree of current deposits has declined.
Asset quality and capital adequacy ratio: 1, non-performing ratio and non-performing netness: in 2018, the non-performing ratio rose one-time under the worsening of bad expectations, but the overall non-performing level is still at the low level of Southwest Bank, and the non-performing net ratio is also proportional.rise.
2. Proportion of focus loans: From the perspective of future adverse pressures, the company’s focus loans accounted for a downward trend in 2016-2018, but there was a slight increase in 1H19, and the focus loans accounted for 2.
From a horizontal comparison, the 1H19 company’s focus category ranks fifth among comparable banks, which has certain advantages over Southwest City Commercial Bank, but higher than the average level of rural commercial banks, which is higher than the average level of rural commercial banks for the first time in five years.
3. The risk compensation ability is at a superior level among comparable banks.
Chongqing Rural Commercial Bank’s provision coverage ratio, the ratio of provision to loan ratio is at a relatively high level among comparable banks. The provision coverage ratio in 1H19 was 368%, and the ratio of provision to loan was 4.
Attachment: Net assets before the issue (calculated based on the company’s audited equity attributable to the parent company divided by the total share capital before the issue on March 31, 2019): 7.
In addition, in the offline issuance, 30% of the shares allocated to each placement target have no lock-in period, and the shares can be circulated from the date of the listing of the Shanghai Stock Exchange; 70% of the shares are locked for 6The lock-up period is calculated from the date of the issuance of shares on the Shanghai Stock Exchange.
Risk Warning: The risk of regional economic deterioration.Risk of insufficient bank capital.
Risk of policy changes.
The subscription of new shares has a lock-up period, which may lock up the operating indicators of listed companies or present risks.