JFL(SH:600901) Guotai Junan Securities·2024-04-29 06:02Investment Rating - The report maintains a "Buy" rating for Jiangsu Jinzhong (600901) and raises the target price to 6.68 CNY per share, corresponding to a P/B of 1.49 for 2024 [5][3]. Core Views - The report highlights a 10.3% year-on-year increase in net profit for Q1 2024, driven by the deepening of the "retail + technology" dual-leading strategy, which has led to an expansion in net interest margins. The asset quality remains stable with sufficient provisions [3][5]. - The company’s net profit for 2023 is projected at 2.66 billion CNY, with an annualized ROE of 15.48% for Q1 2024. The report adjusts the EPS estimates for 2024-2026 to 0.71, 0.85, and 0.97 CNY respectively [3][4]. Financial Summary - Revenue: The operating income is expected to grow from 4,346 million CNY in 2022 to 4,787 million CNY in 2023, and further to 5,583 million CNY in 2024, reflecting a growth rate of 10% for 2023 and 17% for 2024 [4][13]. - Net Profit: The net profit attributable to the parent company is projected to increase from 2,412 million CNY in 2022 to 2,660 million CNY in 2023, and to 3,009 million CNY in 2024, with a growth rate of 10% for 2023 and 13% for 2024 [4][13]. - Earnings Per Share (EPS): The EPS is expected to be 0.63 CNY in 2023 and 0.71 CNY in 2024, with a gradual increase in subsequent years [4][13]. - Dividend: The company plans to distribute a cash dividend of 3.2 CNY per ten shares for 2023, resulting in a dividend payout ratio of 51.13% and a dividend yield of 5.9% based on the closing price on April 26, 2024 [3][4]. Strategic Insights - The company is focusing on a clearer business layout centered around clean energy, high-end equipment, and transportation, with a financing leasing asset balance of 114.11 billion CNY at the end of 2023, marking a year-on-year growth of 9.71% [3][4]. - The report notes that the company is expanding its channels and enhancing customer engagement through a comprehensive smart leasing system, which is expected to improve operational efficiency [3][4].