JFL(SH:600901) Changjiang Securities·2024-05-06 07:32Investment Rating - The report maintains a "Buy" rating for Jiangsu Jinzu (600901.SH) [8] Core Views - Jiangsu Jinzu has maintained a steady asset deployment pace in 2023, with a slight narrowing of net interest margin year-on-year in Q1 2024 due to a high base effect from the previous year. However, the net interest margin remains wider compared to 2023. The company has shown strong profitability and risk control capabilities, with a good management of non-performing loans. The proposed dividend payout ratio for 2023 is 51.13%, an increase of 7.78 percentage points year-on-year. The report is optimistic about Jiangsu Jinzu's stable market share expansion during a period of strong regulation, alongside steady profit growth and high dividend returns to shareholders [2][6][7]. Summary by Sections Financial Performance - In 2023, Jiangsu Jinzu achieved operating revenue and net profit attributable to shareholders of 4.79 billion and 2.66 billion yuan, respectively, representing year-on-year increases of 10.1% and 10.3%. For Q1 2024, the company reported operating revenue and net profit of 1.28 billion and 710 million yuan, with year-on-year growth rates of 5.8% and 4.7% [6][7]. Asset Deployment - The company has maintained a rapid pace of asset deployment, focusing on clean energy and industrial equipment. By the end of 2023, the accounts receivable from financing leases reached 110.14 billion yuan, a year-on-year increase of 9.7%. The company has significantly reduced its investment in infrastructure and road transport sectors [6][7]. Net Interest Margin - The net interest margin for 2023 and Q1 2024 was reported at 3.61% and 3.63%, respectively. The net interest income for 2023 was 4.8 billion yuan, up 15.7% year-on-year, while for Q1 2024, it was 1.26 billion yuan, an increase of 4.9% year-on-year [6][7]. Asset Quality - The company has effectively controlled asset quality, with non-performing asset scales of 1.04 billion and 1.11 billion yuan for 2023 and Q1 2024, respectively. The non-performing loan ratio remained stable at 0.91%. The provision coverage ratio decreased slightly to 448.4% in 2023 and 442.1% in Q1 2024 [7]. Strategic Initiatives - Jiangsu Jinzu is deepening its collaboration with manufacturers and enhancing its retail and technology strategies. By the end of 2023, the number of partnered manufacturers reached 3,613, a year-on-year increase of 53.2%. The company has also improved customer engagement through technological advancements [7].