JFL(SH:600901) GF SECURITIES·2024-04-28 07:32Investment Rating - The report maintains a "Buy" rating for Jiangsu Jinzu (600901.SH) with a reasonable value target of 6.6 CNY per share, compared to the current price of 5.38 CNY [4]. Core Views - Jiangsu Jinzu reported a revenue of 4.787 billion CNY in 2023, a year-on-year increase of 10.14%, and a net profit attributable to shareholders of 2.660 billion CNY, also up by 10.30% [2][8]. - The company achieved a return on equity (ROE) of 15.81% in 2023, maintaining a leading position in the industry, with a cash dividend of 3.2 CNY per ten shares [2][8]. - The company’s receivables from leasing maintained a high growth rate, reaching 110.1 billion CNY by the end of 2023, a 10% increase from the end of 2022 [2][8]. - The non-performing asset ratio remained stable at 0.91% for both 2023 and Q1 2024, while the net interest margin continued to expand, recorded at 3.63% in Q1 2024 [2][11]. Financial Performance Summary - Revenue and Profit Growth: - 2023 revenue: 4.787 billion CNY, up 10.14% YoY - 2023 net profit: 2.660 billion CNY, up 10.30% YoY - Q1 2024 revenue: 1.282 billion CNY, up 5.84% YoY - Q1 2024 net profit: 712 million CNY, up 4.68% YoY [2][8]. - Asset and Profitability Metrics: - 2023 ROE: 15.81% - 2023 non-performing asset ratio: 0.91% - 2023 net interest margin: 3.61% [2][11]. - Future Projections: - Expected net profit for 2024: 2.846 billion CNY, a 7% increase YoY - Projected BVPS for 2024: 4.40 CNY [2][14]. Business Strategy and Growth Drivers - The company has focused on small-ticket retail and vendor leasing models, significantly increasing its partnerships with over 3,000 vendors, a nearly 60% increase from 2022 [2][8]. - The expansion of regional direct sales and the integration of technology through self-developed intelligent decision-making models have enhanced operational efficiency, allowing for 24/7 approval processes for standard retail small-ticket business [2][8].