Jiangsu Changshu Rural Commercial Bank Co., Ltd. (601128) Report Analysis
According to their recent financial report, which was published on 2022-04-22, Jiangsu Changshu Rural Commercial had several impressive financial metrics that should make them more attractive than their peers going forward. Their positive income, growth, and value factors indicate that it is likely to continue to produce impressive results for the foreseeable future, as well. This relative strength should allow Jiangsu Changshu Rural Commercial to continue to perform well even in a tough market. We gave Jiangsu Changshu Rural Commercial a 84 rating and a BUY recommendation.
Jiangsu Changshu Rural Commercial reported earnings results for the first quarter ended March 31, 2022. For the first quarter, the company reported net interest income was CNY 1,847.22 million compared to CNY 1,490.04 million a year ago. Net income was CNY 659.08 million compared to CNY 534.19 million a year ago. Basic earnings per share from continuing operations was CNY 0.241 compared to CNY 0.191 a year ago.
Business Description
Jiangsu Changshu Rural Commercial provides rural financial services in China. The company offers personal savings, debit and credit cards, payment services, financial management services, private banking services, and insurance and third party depository services, as well as microfinance products. It also provides village, agricultural construction, rural, grain, fishing, farm, and shed reform loans; corporate finance products; cash management, settlement, and agency services; and foreign exchange trading and international settlement services, as well as international trade finance products. In addition, the company offers investment banking and financial markets services, as well as online banking services. Jiangsu Changshu Rural Commercial was founded in 2001 and is based in Changshu, China.
Sector Overview
Jiangsu Changshu Rural Commercial is included in the Banks according to GICS (global industry classification standard). The Banks industry, which is in the Financials sector, includes Diversified & Regional Banks whose operations focus on conventional banking, retail banking, and lending to SMEs (small and medium enterprises). Jiangsu Changshu Rural Commercial's industry and sector affiliation are expected to negatively affect their likelihood to overperform the market in the upcoming period, as other sectors appear more likely to benefit from the macroeconomic environment we see now.
Parameter | Value | Change | Score | |
---|---|---|---|---|
Return on Equity | 11.8 | 1.4% | 77 | |
Net Cashflow | 1,132.1 | -70.9% | 71 | |
Capital Expenditure | -266.7 | 2.4% | 81 | |
Free Cashflow | -0.8 | -3.7% | 73 |
* All values are TTM
The below chart reflects Jiangsu Changshu Rural Commercial's birds-eye view on its performance with respect to its peers, the company's fillings as reported or to a similar industry, market cap, and country of origin. While Jiangsu Changshu Rural Commercial's peer average final assessment score stands on 70.0, Jiangsu Changshu Rural Commercial's score is 84.
When trying to optimize the timing of an investment, it's critical to analyze whether the stock looks overbought or oversold, and in which direction the momentum is moving. Jiangsu Changshu Rural Commercial's stock is now priced above its 5-day, 50-day, and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is strengthening. Historically, this is a positive setup in the near, medium, and long-term. In particular, many institutional investors keep close watch of the 200-day moving average. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Jiangsu Changshu Rural Commercial's stock indicates that it's likely oversold. Overall, these technical indicators signal positive upward momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 78.
Overall, Jiangsu Changshu Rural Commercial's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. Jiangsu Changshu Rural Commercial has done an excellent job managing its liabilities. Jiangsu Changshu Rural Commercial's liabilities stood at 246688.2 in the current filing, which represents a 9.4% change from the previous report. This performance is all interesting relative to their peers and suggests that their stock price has room to grow to reflect a higher intrinsic value. The company's liabilities movement component, therefore, received a grade of 85. Also, The company's assets section could set high expectations for Jiangsu Changshu Rural Commercial's future attractiveness, as they went to 268697.6, which is a 9.0% change from the last period. This growth should support upward pressure on its's stock price, which better captures their intrinsic value. The company's asset component, therefore, received a grade of 81. That said, one metric, Cash & Equivalents, stood out as particularly concerning. Jiangsu Changshu Rural Commercial did a poor job related to managing cash and cash equivalents this period, which stood at 9610.1, representing a -10.4% change from the previous filing. The company's cash and cash equivalents metrics highlight a difficult overall financial situation, which may, unfortunately, continue moving forward unless management makes significant changes. Discouraging results like these statistically lead to negative pressure in stock prices, so we rated their cash and cash equivalents with a score of 60. Because its management is doing an excellent job managing these critical metrics, the balance sheet was given a score of 82.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 268,697.6 | 9.0% | 81 |
Liabilities | 246,688.2 | 9.4% | 85 |
Price to Book | 1.1 | 17.1% | 81 |
Cash & Equivalents | 9,610.1 | -10.4% | 60 |
Equity | 20,608.5 | 4.1% | 69 |
The below chart describes Jiangsu Changshu Rural Commercial's performance as reflected on its balance sheet with respect to its peers. While Jiangsu Changshu Rural Commercial received a balance sheet score of 82, the average of its peers stands on 71.0.
Name | Market Cap | Liabilities Movement | Asset Change | Equity/Intangibles Adjustments | Cash & Equivalents | Book Value Momentum | Balance Sheet | mc_sort | Hidden |
---|---|---|---|---|---|---|---|---|---|
China Merchants Bank Co., Ltd. | 1.1T | 72 | 81 | 68 | 37 | 84 | 77 | 0 | 1 |
Industrial Bank Co., Ltd. | 402.2B | 74 | 80 | 68 | 90 | 82 | 85 | 1 | 1 |
Shanghai Pudong Development Bank Co., Ltd. | 233.9B | 74 | 70 | 55 | 51 | 76 | 72 | 2 | 1 |
China Everbright Bank Company Limited | 160.4B | 89 | 44 | 69 | 54 | 76 | 76 | 3 | 1 |
China Minsheng Banking Corp., Ltd. | 150.8B | 80 | 45 | 69 | 90 | 77 | 81 | 4 | 1 |
Bank of Nanjing Co., Ltd. | 111.2B | 81 | 51 | 51 | 89 | 82 | 82 | 5 | 1 |
Bank of Jiangsu Co., Ltd. | 100.3B | 87 | 85 | 55 | 92 | 78 | 83 | 6 | 1 |
Bank of Beijing Co., Ltd. | 95.8B | 64 | 63 | 68 | 67 | 90 | 84 | 7 | 1 |
Bank of Shanghai Co., Ltd. | 92.8B | 83 | 62 | 54 | 90 | 90 | 90 | 8 | 1 |
Bank of Hangzhou Co., Ltd. | 85.0B | 82 | 63 | 54 | 87 | 79 | 81 | 9 | 1 |
Hua Xia Bank Co., Limited | 79.1B | 79 | 49 | 69 | 89 | 76 | 81 | 10 | 1 |
Bank of Chengdu Co., Ltd. | 61.3B | 83 | 76 | 68 | 82 | 83 | 86 | 11 | 1 |
Bank of Changsha Co., Ltd. | 31.4B | 74 | 63 | 69 | 72 | 79 | 79 | 12 | 1 |
QILU BANK CO., LTD. | 22.4B | 80 | 59 | 95 | 77 | 89 | 93 | 13 | 1 |
Bank of Guiyang Co.,Ltd. | 21.2B | 74 | 61 | 69 | 77 | 80 | 80 | 14 | 1 |
Bank of Xi'an Co.,Ltd. | 16.2B | 81 | 55 | 67 | 97 | 75 | 80 | 15 | 1 |
Xiamen Bank Co., Ltd. | 15.6B | 86 | 66 | 69 | 84 | 78 | 83 | 16 | 1 |
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd | 12.2B | 83 | 72 | 69 | 81 | 79 | 83 | 17 | 1 |
Jiangsu Zijin Rural Commercial Bank Co.,Ltd | 10.5B | 41 | 80 | 56 | 95 | 80 | 77 | 18 | 1 |
Wuxi Rural Commercial Bank Co.,Ltd | 10.3B | 66 | 72 | 55 | 62 | 78 | 73 | 19 | 1 |
Jiangsu Suzhou Rural Commercial Bank Co., Ltd | 9.0B | 78 | 77 | 55 | 60 | 75 | 74 | 20 | 1 |
Ping An Bank Co., Ltd. | 281.2B | 79 | 78 | 69 | 88 | 79 | 83 | 21 | 1 |
Bank of Ningbo Co., Ltd. | 225.7B | 86 | 51 | 68 | 97 | 84 | 89 | 22 | 1 |
Bank of Suzhou Co., Ltd. | 22.1B | 91 | 82 | 54 | 97 | 89 | 92 | 23 | 1 |
Qingdao Rural Commercial Bank Co., Ltd. | 18.4B | 66 | 68 | 55 | 72 | 77 | 74 | 24 | 1 |
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd | 11.1B | 84 | 53 | 55 | 65 | 79 | 77 | 25 | 1 |
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. | 9.3B | 76 | 66 | 69 | 76 | 74 | 77 | 26 | 1 |
Jiangsu Changshu Rural Commercial appears likely to maintain its strong income statement metrics, especially Return Factors. Jiangsu Changshu Rural Commercial's reported return on equity (ROE) ratio was 11.8, representing a change of 1.4%. The company appears headed in the right direction in terms of these return factors, exhibiting prudent capital expenditure growth compared to its peers. The company's return factors (ROA & ROE) components, therefore, received a grade of 77. That said, one metric, Revenue Efficiency, stood out as strongly negative. Jiangsu Changshu Rural Commercial management did an underwhelming job managing revenue efficiency this past period. Jiangsu Changshu Rural Commercial's revenue efficiency is 6187.5 according to the metrics in the current filing, which represents a 4.0% change from the previous report. This metric might have a 2.3 percent impact on companies in the same industry and with the same market capitalization. Their revenue efficiency, specifically in contrast to their industry peers', isn't encouraging. Its revenue efficiency, therefore, received a grade of 52. their income statement received an overall score of 71.
Parameter | Value | Change | Score |
---|---|---|---|
Total Revenues | 6,187.5 | 4.0% | 52 |
Return on Equity | 11.8 | 1.4% | 77 |
The below chart describes Jiangsu Changshu Rural Commercial's performance as reflected on its income statement with respect to its peers. While Jiangsu Changshu Rural Commercial received a income statement score of 71 , the average of its peers stands on 69.0.
Jiangsu Changshu Rural Commercial appears likely to maintain its strong cash flow metrics and momentum going forward. Jiangsu Changshu Rural Commercial's management did a great job this period managing its capital expenditure (CapEx). In terms of the raw numbers, CapEx was reported as -266.7, which represents a 2.4% change from the last period. This performance is all the more impressive relative to their peers and competitors. Therefore, its CapEx movement component earned a score of 81. Also, Jiangsu Changshu Rural Commercial did a great job related to free cash flow this period, which stood at -0.8, representing a -3.7% change from the previous filing. This parameter coud affect companies in the same industry and market capitalization by up to 9.3%. The company's free cash flow metrics are especially strong compared to its peers. Management seems to balance cash flow management, asset growth, and resource allocations in general. The company's free cash flow movement, therefore, received a grade of 73. At the same time, one critical cash flow metric, Net Cash Flow, was notably weak. Jiangsu Changshu Rural Commercial's net cash flow metrics were 1132.1 according to their current filing, which represents a -70.9% change from the previous report. Their net cash flow momentum should be a cause for concern and could bring negative momentum for Jiangsu Changshu Rural Commercial's stock price going forward. Its net cash flow, therefore, received a grade of 71. Therefore, the company's cash flow earned a grade of 80.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | 1,132.1 | -70.9% | 71 |
Capital Expenditure | -266.7 | 2.4% | 81 |
Free Cashflow | -0.8 | -3.7% | 73 |
The below chart describes Jiangsu Changshu Rural Commercial's performance as reflected on its cash flow with respect to its peers. While Jiangsu Changshu Rural Commercial received a cash flow score of 80, the average of its peers stands on 68.0.
Name | Market Cap | Cashflow Momentum | Free Cashflow Growth | Capital Expenditure Growth | Assets Factors Momentum | Cash Flow | mc_sort | Hidden |
---|---|---|---|---|---|---|---|---|
China Merchants Bank Co., Ltd. | 1.1T | 90 | 45 | 44 | 69 | 68 | 0 | 1 |
Industrial Bank Co., Ltd. | 402.2B | 81 | 56 | 47 | 69 | 66 | 1 | 1 |
Shanghai Pudong Development Bank Co., Ltd. | 233.9B | 48 | 87 | 85 | 69 | 68 | 2 | 1 |
China Everbright Bank Company Limited | 160.4B | 43 | 95 | 54 | 69 | 56 | 3 | 1 |
China Minsheng Banking Corp., Ltd. | 150.8B | 84 | 45 | 91 | 69 | 79 | 4 | 1 |
Bank of Nanjing Co., Ltd. | 111.2B | 49 | 84 | 48 | 69 | 54 | 5 | 1 |
Bank of Jiangsu Co., Ltd. | 100.3B | 93 | 41 | 90 | 69 | 84 | 6 | 1 |
Bank of Beijing Co., Ltd. | 95.8B | 67 | 67 | 92 | 69 | 75 | 7 | 1 |
Bank of Shanghai Co., Ltd. | 92.8B | 95 | 38 | 80 | 69 | 81 | 8 | 1 |
Bank of Hangzhou Co., Ltd. | 85.0B | 49 | 87 | 90 | 69 | 69 | 9 | 1 |
Hua Xia Bank Co., Limited | 79.1B | 80 | 57 | 69 | 69 | 75 | 10 | 1 |
Bank of Chengdu Co., Ltd. | 61.3B | 66 | 67 | 45 | 69 | 58 | 11 | 1 |
Bank of Changsha Co., Ltd. | 31.4B | 59 | 81 | 45 | 69 | 60 | 12 | 1 |
QILU BANK CO., LTD. | 22.4B | 81 | 54 | 90 | 69 | 80 | 13 | 1 |
Bank of Guiyang Co.,Ltd. | 21.2B | 67 | 67 | 90 | 69 | 75 | 14 | 1 |
Bank of Xi'an Co.,Ltd. | 16.2B | 43 | 90 | 62 | 67 | 51 | 15 | 1 |
Xiamen Bank Co., Ltd. | 15.6B | 93 | 40 | 85 | 69 | 82 | 16 | 1 |
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd | 12.2B | 96 | 37 | 44 | 69 | 69 | 17 | 1 |
Jiangsu Zijin Rural Commercial Bank Co.,Ltd | 10.5B | 46 | 99 | 50 | 67 | 53 | 18 | 1 |
Wuxi Rural Commercial Bank Co.,Ltd | 10.3B | 82 | 52 | 84 | 69 | 79 | 19 | 1 |
Jiangsu Suzhou Rural Commercial Bank Co., Ltd | 9.0B | 85 | 50 | 56 | 69 | 70 | 20 | 1 |
Ping An Bank Co., Ltd. | 281.2B | 91 | 42 | 96 | 69 | 85 | 21 | 1 |
Bank of Ningbo Co., Ltd. | 225.7B | 93 | 38 | 59 | 69 | 71 | 22 | 1 |
Bank of Suzhou Co., Ltd. | 22.1B | 61 | 78 | 49 | 69 | 61 | 23 | 1 |
Qingdao Rural Commercial Bank Co., Ltd. | 18.4B | 86 | 49 | 84 | 69 | 81 | 24 | 1 |
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd | 11.1B | 39 | 98 | 84 | 69 | 64 | 25 | 1 |
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. | 9.3B | 42 | 94 | 51 | 69 | 53 | 26 | 1 |
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