Jiangsu Zijin Rural Commercial Bank Co.,Ltd (601860) Report Analysis
Jiangsu Zijin Rural Commercial's recently released results from Q3 indicate that Jiangsu Zijin Rural Commercial is performing reasonably well and on par with its peers. This typically translates into the stock performing on par with market performance for the upcoming quarter. As such, Jiangsu Zijin Rural Commercial received an overall score of 70 and a HOLD recommendation.
Jiangsu Zijin 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 991.6 million compared to CNY 1,011.45 million a year ago. Net income was CNY 364.54 million compared to CNY 329.8 million a year ago. Basic earnings per share from continuing operations was CNY 0.1 compared to CNY 0.09 a year ago. Diluted earnings per share from continuing operations was CNY 0.09 compared to CNY 0.08 a year ago.
Business Description
Jiangsu Zijin Rural Commercial provides various banking products and services to personal and business customers. It offers deposits; loans; foreign currency deposits, international settlement, trade finance, and treasury services; and financial industry and investment banking services. The company also offers debit and credit cards; and mobile and Internet banking services, as well as ATMs. Jiangsu Zijin Rural Commercial. was founded in 2011 and is based in Nanjing, China.
Sector Overview
Jiangsu Zijin 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 Zijin 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 | 9.7 | -3.5% | 55 | |
Net Cashflow | -14,393.4 | -1365.3% | 46 | |
Capital Expenditure | -43.2 | -16.2% | 50 | |
Free Cashflow | -4.4 | -2200.5% | 99 |
* All values are TTM
The below chart reflects Jiangsu Zijin 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 Zijin Rural Commercial's peer average final assessment score stands on 68.0, Jiangsu Zijin Rural Commercial's score is 70.
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 Zijin Rural Commercial's stock is now priced above its 5-day, but below its 50-day and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock's price movement momentum is weakening. Historically, this is a positive setup in the near-term. The company is trading near it's 12-month low, which signals it struggle to keep above it support price. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Jiangsu Zijin Rural Commercial's stock indicates that it's likely oversold. Overall, these technical indicators signal negative momentum. Therefore, this stock received a cumulative TA (technical analysis) score of 47.
Jiangsu Zijin Rural Commercial appears likely to maintain its strong balance sheet metrics and momentum going forward. Jiangsu Zijin Rural Commercial did a great job related to cash and cash equivalents this period, which stood at 11453.9, representing a 111.7% change from the previous filing. This performance is significantly more impressive than its peers and competitors. It suggests that their stock price has room to grow to reflect its actual intrinsic value. Consequently, their cash and cash equivalents movement received a grade of 95. Also, Jiangsu Zijin Rural Commercial assets on their balance sheet, moved to 217837.8, which is a -4.4% change from the last period. These results, specifically in contrast to their industry peers' performance, should support an upswing in the company's stock price. Therefore, its asset component earned a score of 80. That said, one metric, Liabilities, stood out as particularly concerning. In terms of liabilities, Jiangsu Zijin Rural Commercial published uninspiring results. Their reported liabilities were 202032.3, representing a -5.0% change from the previous report. This performance is relatively weak in comparison to their peers and suggests that its's stock price will likely suffer until this is solved. Its liabilities movement component, therefore, received a grade of 41. Its balance sheet, therefore, earned a score of 77.
Parameter | Value | Change | Score |
---|---|---|---|
Assets | 217,837.8 | -4.4% | 80 |
Liabilities | 202,032.3 | -5.0% | 41 |
Price to Book | 0.8 | -11.2% | 80 |
Cash & Equivalents | 11,453.9 | 111.7% | 95 |
Equity | 15,805.5 | 3.2% | 56 |
The below chart describes Jiangsu Zijin Rural Commercial's performance as reflected on its balance sheet with respect to its peers. While Jiangsu Zijin Rural Commercial received a balance sheet score of 77, the average of its peers stands on 72.0.
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 |
Jiangsu Changshu Rural Commercial Bank Co., Ltd. | 20.6B | 85 | 81 | 69 | 60 | 81 | 82 | 15 | 1 |
Bank of Xi'an Co.,Ltd. | 16.2B | 81 | 55 | 67 | 97 | 75 | 80 | 16 | 1 |
Xiamen Bank Co., Ltd. | 15.6B | 86 | 66 | 69 | 84 | 78 | 83 | 17 | 1 |
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd | 12.2B | 83 | 72 | 69 | 81 | 79 | 83 | 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 Zijin Rural Commercial appears likely to maintain its strong income statement metrics, especially Revenue Efficiency. Jiangsu Zijin Rural Commercial's financials reveal an interesting trend for their revenue efficiency. This parameter often affects companies in the same industry and market capitalization by up to 0.3%. Their impressive revenue efficiency is even more impressive relative to its peers and competitors in the current market. The company's revenue efficiency, therefore, received a grade of 81. That said, one metric, Return Factors, stood out as strongly negative. In this filing, Jiangsu Zijin Rural Commercial reported a return on equity (ROE) ratio of 9.7, which represents a growth of -3.5%. This metric might have a 10.5 percent impact on companies in the same industry and with the same market capitalization. They does not yet appear to be headed in the right direction regarding these return on equity and return on assets metrics. Therefore, their return factors component earned a score of 55. their income statement received an overall score of 60.
Parameter | Value | Change | Score |
---|---|---|---|
Total Revenues | 3,168.8 | 5.8% | 81 |
Return on Equity | 9.7 | -3.5% | 55 |
The below chart describes Jiangsu Zijin Rural Commercial's performance as reflected on its income statement with respect to its peers. While Jiangsu Zijin Rural Commercial received a income statement score of 60 , the average of its peers stands on 64.0.
Jiangsu Zijin Rural Commercial's most recent cash flow report was not encouraging. Jiangsu Zijin Rural Commercial's produced underwhelming cash flow numbers in this filing. Net cash flow was reported as -14393.4, which is a -1365.3% change from the last report. Their net cash flow momentum should be a cause for concern and could bring negative momentum for Jiangsu Zijin Rural Commercial's stock price going forward. Its net cash flow, therefore, received a grade of 46. Also, Jiangsu Zijin Rural Commercial's management did not a remarkable job this period managing capital expenditures (CapEx). In terms of the raw numbers, CapEx was reported as -43.2, which represents a -16.2% change from the last period. The company's disappointing CapEx growth is expected to stunt the momentum they hoped for this period. Its CapEx movement, therefore, received a grade of 50. However, we can draw some encouragement from Jiangsu Zijin Rural Commercial's momentum in cash flow management. Jiangsu Zijin Rural Commercial's published free cash flow numbers were substantial and reflected management's focus on a healthy change strategy. Jiangsu Zijin Rural Commercial recorded free cash flow of -4.4, which represents a -2200.5% change from the previous report. Companies in the same industry and market capitalization are typically affected by this parameter by up to 8.5%. 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 99. Therefore, their cash flow earned a grade of 53.
Parameter | Value | Change | Score |
---|---|---|---|
Net Cashflow | -14,393.4 | -1365.3% | 46 |
Capital Expenditure | -43.2 | -16.2% | 50 |
Free Cashflow | -4.4 | -2200.5% | 99 |
The below chart describes Jiangsu Zijin Rural Commercial's performance as reflected on its cash flow with respect to its peers. While Jiangsu Zijin Rural Commercial received a cash flow score of 53, the average of its peers stands on 65.0.
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 |
Jiangsu Changshu Rural Commercial Bank Co., Ltd. | 20.6B | 71 | 73 | 81 | 69 | 80 | 15 | 1 |
Bank of Xi'an Co.,Ltd. | 16.2B | 43 | 90 | 62 | 67 | 51 | 16 | 1 |
Xiamen Bank Co., Ltd. | 15.6B | 93 | 40 | 85 | 69 | 82 | 17 | 1 |
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd | 12.2B | 96 | 37 | 44 | 69 | 69 | 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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