Bank of Nanjing (601009): Fixed increase and landing and timely re-launch of the first combination

Bank of Nanjing (601009): Fixed increase and landing and timely re-launch of the first combination

Bank of Nanjing (601009): Fixed increase and landing and timely re-launch of the first combination

Event: The Bank of Nanjing disclosed the non-public fixed increase plan, and the number of non-public shares issued this time did not exceed 16.

9.6 billion shares, the amount of funds raised does not exceed 14 billion, the issue target is BNP Paribas, Zijin Investment, Communications Holdings and Jiangsu Tobacco Company.

For example, a total of 14 billion fixed increase plan is expected to be raised.

17 yuan / share will be the reserve price.

According to the fixed increase plan, “90% of the average trading price of the company’s stocks in the 20 trading days before the first day of the issue period and the latest audited net assets attributable to shareholders of ordinary shares is the higher price.”Net, Nanjing Bank restructured its net assets attributable to ordinary shareholders in 20188.

The increase is set at 01 yuan. If the market price is not broken, the increase will be 90% of the average price of the 20 trading days before the first day of the issue period.

Because it involves the bank’s own capital planning and scale growth plan, the scale of funds raised by listed banks when they are determined to increase must be promoted as much as possible.

According to Nanjing Bank, the maximum number of shares raised is 16.

According to estimates of 9.6 billion shares, in order to ensure that 14 billion are raised, the average price of the 20 trading days before the first day of the issue period should be higher than the allowed net assets attributable to ordinary shareholders for 18 years and at least 9.

17 yuan / share, which means (the maximum amount of raised funds is 14 billion / the maximum number of shares raised is 16.

9.6 billion shares) / 90%.

We will increase the number of boots to land, eliminate the market potential, consolidate the capital strength, and estimate that the repair can be expected.

Bank of Nanjing ‘s capital issue has been the biggest factor suppressing its estimates since the 18-year increase was unexpectedly denied. The implementation of the new fixed-income plan has effectively eliminated two major market concerns about Nanjing Bank.

In addition to sound pre-events, the market has doubts about the progress of capital replenishment of Nanjing Bank. The completion of the fixed increase will help to strengthen the core tier one capital of Nanjing Bank and ease the pressure on market capital binding business development.

Although the core tier one capital adequacy ratio of the Bank of Nanjing has rebounded quarter by quarter since 3Q18, and capital has been transferred endogenously, it is 1Q198.

The 52% core tier 1 capital adequacy ratio is only 1 quantity above the regulatory bottom line requirement.

Based on the static calculation of 1Q19 data, 14 billion fixed-increasing finished products will increase the core tier one, tier one and total capital adequacy ratios.

66 averages to 10.

18%, 11.

36%, 14.

44%, significantly enhanced capital strength.

The participation of new participants from foreign banks and high-quality state-owned enterprises in Jiangsu Province, France and Pakistan Bank, Zijin Investment, Transportation Holdings and Jiangsu Tobacco Company has joined the four participants, adding even more power to the future development of Bank of Nanjing.

The details of the new fixed increase plan are the same as those of the negative plan in terms of funds raised and the number of issued shares. The biggest change comes from the fixed increase participants and their subscription ratios: Nanjing High Technology, Taiping Life and Phoenix Group have withdrawn from the new fixed increase plan.Bank of Pakistan and Jiangsu Tobacco Company are new, and Zijin Investment and Communications Holding Group have increased their subscription ratios by 0 compared to traditional solutions.

7 and 21.

8 up to 11.

4% and 60.

0%.

According to the calculation of the high-level increase, the shareholding ratio of France and Pakistan Bank, Zijin Investment, Communications Holdings and Jiangsu Tobacco Company will be 13.

58%, 12.

25%, 10.

00% and 3.

57% are located first, second, third and fifth.

We believe that the business cooperation between the four participating participants and Bank of Nanjing in the future is worth looking forward to.

The merger and the expansion of the Bank of Nanjing and the Bank of Nanjing will be another practice of “transferring” the domestic banking industry in the context of internal financial opening up. The close cooperation between Bank of Nanjing and the Bank of France and Pakistan will be further taken.

According to the new fixed increase plan, and based on the raising limit, the proportion of FBA Bank’s shares in Nanjing Bank will decrease slightly.

3 up to 13.

6%, and the Bank ‘s shareholding ratio will be reduced by the old fixed increase plan.

5 up to 12.4%.

At the same time, Communications Holdings and Jiangsu Tobacco Company are two high-quality state-owned enterprises in Jiangsu Province. In addition to bringing rich deposit resources to the Bank of Nanjing, they also have a broad space for cooperation in the investment-loan linkage of science and technology enterprises.

In particular, Transportation Holdings, as the largest state-owned enterprise in Jiangsu Province, ranks first among Jiangsu non-financial enterprises in terms of asset size, net assets, and profits. It has many holding companies, and according to the company’s announcement, Transportation Holdings holds five listed companies.Among them, the shares of non-bank listed institutions (Ninghu Expressway, Jiangsu Leasing, Huatai Securities, Jinling Hotel, Chunlan Shares) will be business cooperation resources for Nanjing Bank.

Another point is that through the wholly-owned subsidiary Spruce Capital’s investment in the new economy, health care, advanced manufacturing and other emerging industries, it has become a high-quality project resource. It has participated in Ant Financial, Chain Home Real Estate, Huatu Education, Mindray MedicalWait for new kinetic energy benchmarking companies to invest.

Bank of Nanjing has its own financial market business advantages. In 2015, it began to explore the investment-loan linkage 合肥夜网 business model for “small equity + large debt” of technology-based small and medium-sized enterprises at the start-up stage.There is much to be done in the financing business of SMEs.

Company view: The Bank of Nanjing will increase its boots to eliminate market share, and the participants of the new increase plan are rich in resources and continuously strengthened, which can greatly substitute for future development.

And the fundamentals belong to the first echelon. In the first quarter of 2019, the revenue end of the report has significantly improved, the asset quality is stable, the provisions are more comprehensive and true, and the dividend rate remains at a high level of 30%.

68% (the highest level of listed banks).

The current maximum corresponding to 19 years is only 0.

90X PB, a 45% discount from the previous Bank of Ningbo, is worthy of underestimation of high-quality stocks.

We estimate that the growth rate of net profit attributable to mothers of Nanjing from 2019 to 2021 will be 18.

0%, 18.

8%, 18.

8% (maintain profit forecast), maintain “Buy” rating, target price 11.

45 yuan corresponds to 1.

2X 19-year PB, 41% upside, repeating the A-share first push combination.

Risk reminder: adverse risks caused by economic substance.