北京桑拿论坛 夜生活 Jiangsu Leasing (600901): Increased spreads in the third quarter and spreads extended

Jiangsu Leasing (600901): Increased spreads in the third quarter and spreads extended

Jiangsu Leasing (600901): Increased spreads in the third quarter and spreads extended

This report reads: The company ‘s leasing scale has improved in the third quarter, the interest rate spread has continued to increase, and the non-performing ratio has decreased slightly from the previous month. Under the economic pressure, the company ‘s fundamentals are still strong, currently 19 years P / E.

8 times, expected ROE is expected to increase by 14%.

Investment Highlights: Maintain the net price of 7.

54 yuan, corresponding to 12 times the price-earnings ratio in 2020, maintain “overweight” rating.

Operating income for the first three quarters / net profit attributable to mothers22.

2 billion / 12.

100 million, previously +25.

0% / + 26.

3%, deduct non-net profit + 34%, deduct non-ROE 10.

6%; Q3 net profit 4.

200 million, + 35% a year, + 4% MoM, in line with our expectations.

In the third quarter, the expansion of the company’s leasing scale improved, and the spread continued to increase, maintaining the company’s EPS of 2019-21.

54/0.

65/0.

78 yuan, + 29% / + 21% / + 21% in the past; the company’s business transformation is accelerating, the non-performing ratio is much lower than the average value of the banking industry, and there is ample provision. It is currently 11 times P / E in 19, increasing its holdings.

The scale of leasing expenses increased in the third quarter, and the spread spread continued.

1) As of the end of September, the balance of the company’s finance lease receivables was 65.2 billion, which was +12 earlier.

4%, the net investment in the third quarter was 2.6 billion, compared with 7 in the previous two quarters.

400 million has increased, and the maximum asset growth rate is expected to be 15%.

2) The company disclosed that the net interest margin for the first three quarters was 3.

6%, previously + 72bps, an increase of 25%; Expansion of 杭州桑拿网 spreads is expected to be mainly affected by the decline in financing costs, and the return on the asset side remains relatively stable. We gradually increase the average interest rate of the company’s interest-bearing debts in the first three quarters of 4.

29% (annualized), -78bp per year.

3) On the whole, the company’s interest-earning asset yield has increased, and equipment leasing has accelerated, and it is expected that it will maintain a better spread performance in the future.

Accelerate business transformation and asset quality and safety.

1) The company continues to promote the transformation of equipment leasing in the manufacturer model, focusing on clean energy, high-end equipment, automotive finance, information technology, agricultural machinery and other fields.

The number of contracts for transformational business of the 19H1 company accounted for 98% and the amount of investment accounted for 56%, which was + 22pct compared with last year.

2) The NPL ratio at the end of the third quarter was 0.

83%, a slight decrease from the previous quarter, compared with 0 at the end of 18 years.

79% rose slightly, lower than the average level of banks;

5%, provision coverage ratio of 419%, provision level is relatively high.

Catalysts: The effect of structural change at the asset side is evident; credit risk is improved when the economy stabilizes.

Risk warning: The downward pressure on the economy is increasing, causing the growth rate of the asset side to fall, and the non-performing rate is high.