Changshu Bank (601128) Annual Report 2018 and 2019 First Quarterly Report Review: Profitability Enhancement and Optimization of Liability Structure

This report reads: Changshu Bank’s 18th annual report and 19th quarterly report exceeded market expectations.

Profitability continued to improve, the resistance structure was significantly optimized, and the target price was raised to 9.

02 yuan, corresponding to 1 in 19 years.

35 times PB, 18% of the current price space, increase the level of holdings.

Investment highlights: Investment advice: Maintain a forecast of 22/20/21 net profit growth rate.

07% 17.

32% / 17.

89%, corresponding to EPS0.

79 (-0.

04, due to the difference between the 18-year forecast value and the actual value, and the conversion of convertible bonds to shares diluted) / 0.

96 (-0.

01) / 1.

13 yuan, BVPS6.

68/7.

39/8.

23 yuan.

The current price corresponds to 9.

69/7.

98/6.

77 times PE, 1.

14/1.

03/0.

93 times PB.

Considering that the fundamentals of Changshu Bank continue to improve, raise the 重庆耍耍网 target price to 9.

02 yuan, corresponding to 1 in 19 years.

35 times PB, the current price space is 18%, maintaining the overweight level.

Performance Overview: 18A / 19Q1 revenue +16.

6% / 19.

3%, net profit +17.

5% / 21.

0%, net interest margin (beginning and end of period) 3.

28% / 3.

17%, non-performing rate is 0.

99% / 0.

96%, provision coverage rate of 445% / 459%.

New understanding: profitability improved, debt structure optimized and profitability improved.

18A / 19Q1ROA are 1 respectively.

01% / 1.15%, continued to maintain the upward trend, and the core driving force gradually increased the proportion of personal operating loans to increase the rapid growth of revenue.

18A personal business loan for three years +45.

5%, accounting for +10 for ten years.

9 to 32 pieces.

8%.

杭州夜网论坛 Optimization of resistance structure.

① The proportion of deposits increased.

19Q1 deposits were +12 from the previous quarter.

4%, a significant increase of 9% from the previous month.

7 to 83.

6%, of which personal time deposits contributed 80% of the increase; ② inter-bank deposit certificates dropped.

In 1Q1, the size of interbank certificates of deposit decreased by 80 trillion net, and the proportion decreased by 5.

2pc; ③ The cost of resistance is stable.

19Q1 interest-bearing debt cost ratio 2.

46%, unchanged from the end of 18 years.

Bad continues to improve.

① Negative, concerned about the double decline in loans for two consecutive quarters, 19Q1 NPL ratio -3bp to 0.

96%; ② 19Q provisioning coverage ratio + 14pc to 455%.

Risk warning: Credit risk caused by economic growth stall, regional credit risk exposure