Zhangjiagang Travel (002839): Small and micro transformation is moving towards a good situation

Zhangjiagang Travel (002839): Small and micro transformation is moving towards a good situation

High quality rural commercial bank in southern Jiangsu to create small and micro-financial characteristics Zhangjiagang Bank is a high quality rural commercial bank in southern Jiangsu with rapid transformation and progress.

As a relatively small county-level rural commercial bank, Zhangjiagang Bank has prominent micro-micro characteristics and is making breakthroughs in micro-loans (personal business loans) with smaller customers.

This customer group has more diversified risks and relatively higher pricing, which helps optimize bank interest margins and asset quality.

Since 2019, the growth rate of Zhangjiagang Bank’s assets has remained at two or more. The revenue and PPOP growth rate are among the forefront of listed rural commercial banks.

We believe that the Zhangjiagang Bank has the conditions to do a good job in small and micro businesses, and gradually promote the continuous improvement of profitability and development quality.

We predict that the company’s net profit growth attributable to mothers will be 13 in 2019-2021.

0%, 13.

7%, 14.

9%, EPS is 0.

52 yuan, 0.

59 yuan, 0.

68 yuan with a target price of 6.



26 yuan, maintaining the “overweight” level.

Small and micro businesses: The space is vast and the conditions are complete. Small and micro enterprises are related to national economy and people’s livelihood. Regulatory authorities give firm support, and rural commercial banks should stick to their positioning.

Zhangjiagang Bank’s small and micro businesses have a good momentum of development and can enjoy policy dividends. We believe that it has continuous momentum to do a good job.

First of all, as one of the most active areas in China’s private economy, Southern Jiangsu has a large number of high-quality small and micro entities, which provides a source of customers for Zhangjiagang.

Basically, Zhangjiagang 北京夜生活网 Bank, as a rural commercial bank that has built its roots, has a better understanding of local enterprises and has a good risk control capability.

Finally, Zhangjiagang has a certain number of remote branches, which can promote the experience of small and micro services.

As one of the first batch of rural commercial banks in China that has developed across regions, the scale of its stock in other places has broken through. At present, the company has noticed the business in different places. The expansion of assets in other places is an important driving force for the development of Zhangjiagang Bank.

Financial indicators: conversion-driven, performance-oriented, small-to-micro, driving the fundamentals of Zhangjiagang Bank to improve in many dimensions.

On January 9, 2019, the revenue of Zhangjiagang Bank increased 天津夜网 its net profit attributable to mothers by 30.

1%, 14.

0%, of which revenue growth rate ranked first in listed rural commercial banks.

There are three main reasons for the rapid profit growth: First, the scale has expanded rapidly.

Since the end of September 2018, Zhangjiagang Bank’s loan growth rate has remained above 20% for five consecutive quarters.

Zhangjiagang Bank has a strong demand for personal business loans, but the supply of financial institutions is limited. Therefore, small and micro entities have become an important driving force for Zhangjiagang Bank’s loan growth.

Secondly, the relatively high pricing of small and micro loans has driven Zhangjiagang’s net interest margin to continue to strengthen.

Thirdly, the repayment ability of personal business loan borrowers and the redistribution of repayment expectations, the credit risk is dispersed and controllable, and the asset quality of Zhangjiagang Bank is continuously improved.

The transition from small to micro is basically good, with a target price of 6.


The 26 yuan Zhangjiagang line has excellent location conditions, small and micro features prominent and sustainable substitution. The small and micro changes drive the fundamentals to continue to improve. It is recommended to grasp investment opportunities.

We predict that the company’s net profit growth attributable to mothers in 2019-2021 will be 13 respectively.

0%, 13.

7%, 14.

9% (previous forecast 9).
1%, 9.

0%,-), the corresponding EPS is 0.
52 yuan, 0.

59 yuan, 0.

68 yuan (previous forecast was 0.

50 yuan, 0.

55 yuan,-), 2020 BVPS6.

05 yuan, corresponding to PB0.

92 times.

On January 21, 2020, the comparable A-share listed agricultural and commercial banks have consistently predicted a PB of 1.

00 times, the company’s transformation is advancing rapidly, and the fundamental growth improves the expected growth, which determines that the company should enjoy the forecast premium. We give the target a PB of 2020.


20 times the target price by 5.


13 yuan increased to 6.


26 yuan, maintaining the “overweight” level.

Risk Warning: The economic downturn exceeds expectations, and asset quality deteriorates more than expected.