JFL(SH:600901) INDUSTRIAL SECURITIES·2024-04-28 06:02Investment Rating - The investment rating for the company is "Add" [1] Core Views - The company, Jiangsu Jinzu, reported a revenue of 4.787 billion and a net profit of 2.660 billion for 2023, reflecting year-on-year increases of 10.14% and 10.30% respectively. The weighted average ROE decreased by 0.08 percentage points to 15.81% [1] - For Q1 2024, the company achieved a revenue of 1.282 billion and a net profit of 0.712 billion, with year-on-year increases of 5.84% and 4.68%, and quarter-on-quarter increases of 11.82% and 14.98% [1] - The total assets of the company reached 119.92 billion by the end of 2023, a year-on-year increase of 10.03%, with financing lease assets accounting for 114.11 billion, up 9.71% year-on-year. By the end of March 2024, total assets increased to 127.29 billion, a quarter-on-quarter rise of 6.14% [1] - The company has focused its asset allocation on clean energy, road transportation, and industrial equipment, with asset balances of 23.35 billion, 16.01 billion, and 14.88 billion respectively in 2023, showing year-on-year changes of +28.83%, -8.48%, and +48.64% [1] - The net interest margin for the leasing business in 2023 was 3.61%, an increase of 0.09 percentage points from 2022, and it improved to 3.63% in Q1 2024 [1] - The company maintained a healthy non-performing loan ratio of 0.91% in both 2023 and Q1 2024, although the provision coverage ratio slightly decreased to 448.4% in 2023 and 442.1% in Q1 2024 [1] - The company has expanded its customer acquisition through three main channels: manufacturers, regional direct sales, and online platforms, significantly increasing the number of cooperative manufacturers to 3,613, up by 1,255 year-on-year [1] - The company is expected to achieve net profits of 2.949 billion, 3.204 billion, and 3.462 billion for the years 2024 to 2026, with year-on-year growth rates of 10.9%, 8.7%, and 8.0% respectively, maintaining a "Add" rating based on a PB valuation of 1.10, 0.95, and 0.83 times the closing price on April 26 [1] Financial Forecast - The company is projected to generate revenues of 5.248 billion, 5.668 billion, and 6.121 billion for 2024, 2025, and 2026 respectively, with net profits expected to be 2.949 billion, 3.204 billion, and 3.462 billion for the same years [2] - The EPS for 2024, 2025, and 2026 is forecasted to be 0.69, 0.75, and 0.81 respectively, while the PB is expected to be 1.10, 0.95, and 0.83 [2]