NJBK(SH:601009) ZHESHANG SECURITIES·2024-10-11 08:23Investment Rating - The investment rating for Nanjing Bank is "Buy" and is maintained [8] Core Views - The fundamentals and trading aspects of Nanjing Bank are resonating positively, with the potential for convertible bonds to enhance capital, positioning the bank to return to the forefront of city commercial banks [2] - The recent shareholding increase by Eastern Airport Group, a new shareholder, reflects confidence in Nanjing Bank's future development and value growth [3] - The bank's stock price has reached the convertible bond conversion price, and if all bonds are converted, it could significantly bolster core Tier 1 capital [3] - The bank is expected to continue its strong performance, with projected net profit growth of 10.2% for 2024-2026 [7] Summary by Sections Shareholder Support - Eastern Airport Group increased its stake in Nanjing Bank by 1.09% through the secondary market, indicating strong support from shareholders [3] - Other significant shareholders include Jiangsu State-owned Assets and Nanjing State-owned Assets, which are expected to continue supporting the trading environment [4] Dividend Expectations - The board has approved a mid-year dividend plan for 2024, with a payout ratio increasing by 2% to 32%, suggesting a projected dividend yield of 6.07% based on current prices [5] Performance Outlook - Nanjing Bank is anticipated to maintain a strong growth trajectory, with revenue and profit expected to show significant increases in the upcoming quarters [6] - The bank's fundamentals are supported by a clear value creation strategy, regional development trends, and a new management cycle [6] Financial Projections - Forecasted net profit for 2024 is 20.4 billion, with a projected growth rate of 10.24% [12] - The bank's price-to-book (P/B) ratios for 2024-2026 are estimated at 0.70, 0.64, and 0.58 respectively, with a target price of 13.33 per share, indicating a potential upside of 28% from the current price [7][12]