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Jiangsu Suzhou Rural Commercial Bank Co., Ltd (603323) Report Analysis

Corporate Events

Positive

Jiangsu Suzhou Rural Commercial Bank Plans to A...

2022-06-13 08:32:00

Jiangsu Suzhou Rural Commercial Bank Co. Ltd. (SHSE:603323) said it plans to acquire stake in Jiangsu Jing Jian Run Feng County Bank.

Positive

Jiangsu Suzhou Rural Commercial Bank Co., Ltd, ...

2022-04-28 00:00:00

Jiangsu Suzhou Rural Commercial Bank Co., Ltd, 0.16 (CNY), Cash Dividend, Jun-16-2022

Positive

Jiangsu Suzhou Rural Commercial Bank Plans to Acquire Stake in Jing Jian Run Feng County Bank

2022-06-13 08:32:00

Jiangsu Suzhou Rural Commercial Bank Co. Ltd. (SHSE:603323) said it plans to acquire stake in Jiangsu Jing Jian Run Feng County Bank.

Positive

Jiangsu Suzhou Rural Commercial Bank Co., Ltd, 0.16 (CNY), Cash Dividend, Jun-16-2022

2022-04-28 00:00:00

Jiangsu Suzhou Rural Commercial Bank Co., Ltd, 0.16 (CNY), Cash Dividend, Jun-16-2022

Fundamental Summary

At a high level, the metrics from Jiangsu Suzhou Rural Commercial's Q1 financial report release provided many positive indicators. 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 Suzhou Rural Commercial to continue to perform well even in a tough market. Therefore, they earned a total score of 76 out of 100 and a HOLD recommendation.

Jiangsu Suzhou 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 820.65 million compared to CNY 777.45 million a year ago. Net income was CNY 308.37 million compared to CNY 254.1 million a year ago. Basic earnings per share from continuing operations was CNY 0.17 compared to CNY 0.14 a year ago. Diluted earnings per share from continuing operations was CNY 0.16 compared to CNY 0.13 a year ago.

Business Description

Jiangsu Suzhou Rural Commercial provides personal and corporate banking products and services in China. The company offers current and savings accounts, and other deposits; certificates of deposits; loans and corporate and SME financing; and wealth management, intermediate, and internet banking services, as well as cards. It also provides international trade finance and settlement, letters of credit, and foreign currency savings and exchange services. The company was formerly known as Jiangsu Wujiang Rural Commercial Bank Co., Ltd. and changed its name to Jiangsu Suzhou Rural Commercial in March 2019. The company was founded in 2004 and is headquartered in Suzhou, China.

Sector Overview

Jiangsu Suzhou 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 Suzhou 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.

Fundamental Highlights


Parameter Value Change Score
Assets 163,942.6 6.9% 77
Liabilities 150,302.1 7.2% 78
Price to Book 0.7 -6.0% 75
Cash & Equivalents 3,609.9 -19.6% 60
Equity 13,516.9 3.7% 55
Total Revenues 2,557.7 -2.3% 84
Parameter Value Change Score
Return on Equity 9.3 5.2% 77
Net Cashflow -1,011.4 -288.9% 85
Capital Expenditure -245.9 -10.7% 56
Free Cashflow -1.0 66.5% 50

* All values are TTM

The below chart reflects Jiangsu Suzhou 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 Suzhou Rural Commercial's peer average final assessment score stands on 72.0, Jiangsu Suzhou Rural Commercial's score is 76.

  •  603323
  •  Peers average
Name Market Cap Balance Sheet Income Statement Cash Flow Rating Final Assessment mc_sort Hidden
China Merchants Bank Co., Ltd. 1.1T 77 63 68
Hold
73
73 0 1
Industrial Bank Co., Ltd. 402.2B 85 67 66
Buy
80
80 1 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 72 61 68
Hold
68
68 2 1
China Everbright Bank Company Limited 160.4B 76 63 56
Hold
70
70 3 1
China Minsheng Banking Corp., Ltd. 150.8B 81 62 79
Hold
78
78 4 1
Bank of Nanjing Co., Ltd. 111.2B 82 66 54
Hold
74
74 5 1
Bank of Jiangsu Co., Ltd. 100.3B 83 71 84
Buy
86
86 6 1
Bank of Beijing Co., Ltd. 95.8B 84 59 75
Hold
77
77 7 1
Bank of Shanghai Co., Ltd. 92.8B 90 64 81
Buy
85
85 8 1
Bank of Hangzhou Co., Ltd. 85.0B 81 70 69
Buy
80
80 9 1
Hua Xia Bank Co., Limited 79.1B 81 63 75
Hold
77
77 10 1
Bank of Chengdu Co., Ltd. 61.3B 86 68 58
Buy
79
79 11 1
Bank of Changsha Co., Ltd. 31.4B 79 62 60
Hold
72
72 12 1
QILU BANK CO., LTD. 22.4B 93 69 80
Strong Buy
91
91 13 1
Bank of Guiyang Co.,Ltd. 21.2B 80 62 75
Hold
77
77 14 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 82 71 80
Buy
84
84 15 1
Bank of Xi'an Co.,Ltd. 16.2B 80 56 51
Hold
70
70 16 1
Xiamen Bank Co., Ltd. 15.6B 83 62 82
Buy
80
80 17 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 83 70 69
Buy
81
81 18 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 77 60 53
Hold
70
70 19 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 73 64 79
Hold
73
73 20 1
Ping An Bank Co., Ltd. 281.2B 83 72 85
Strong Buy
87
87 21 1
Bank of Ningbo Co., Ltd. 225.7B 89 70 71
Buy
86
86 22 1
Bank of Suzhou Co., Ltd. 22.1B 92 60 61
Buy
80
80 23 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 74 61 81
Hold
73
73 24 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 77 71 64
Hold
76
76 25 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 77 70 53
Hold
72
72 26 1

Technical Analysis

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 Suzhou 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. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), Jiangsu Suzhou 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 57.

Bearish 57
Close Price 5.04
52W Low 4.29
52W High 5.85
5D MA 5.0
50D MA 5.19
200D MA 5.18
MACD -0.04
RSI 0.58
STOCH 18.42

Balance Sheet Analysis

Overall, Jiangsu Suzhou Rural Commercial's critical balance sheet metrics appear to signal strong support and a high likelihood of positive growth going forward. Jiangsu Suzhou Rural Commercial has done an excellent job managing its liabilities. Jiangsu Suzhou Rural Commercial's liabilities stood at 150302.1 in the current filing, which represents a 7.2% change from the previous report. These liabilities changes appear balanced compared to their peers and project the message that management is capable and focused on balancing asset growth, resource allocation, and growing liabilities. These results statistically lead to positive movement in stock prices, so we rated its liabilities movement component 78. Also, The company's assets section could set high expectations for Jiangsu Suzhou Rural Commercial's future attractiveness, as they went to 163942.6, which is a 6.9% 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. The company's asset component, therefore, received a grade of 77. That said, one metric, Equity, stood out as particularly concerning. Jiangsu Suzhou Rural Commercial reported weak equity changes momentum this period. At filing, equity was reported as 13516.9, representing 3.7% change from the previous report. This parameter often affects companies in the same industry and market capitalization by up to 7.1%. These metrics are all the more disappointing relative to their peers and should blunt potential positive momentum in its's stock price. Consequently, their equity movement received a grade of 55. Because its management is doing an excellent job managing these critical metrics, the balance sheet was given a score of 74.

Parameter Value Change Score
Assets 163,942.6 6.9% 77
Liabilities 150,302.1 7.2% 78
Price to Book 0.7 -6.0% 75
Cash & Equivalents 3,609.9 -19.6% 60
Equity 13,516.9 3.7% 55
* All values are TTM

The below chart describes Jiangsu Suzhou Rural Commercial's performance as reflected on its balance sheet with respect to its peers. While Jiangsu Suzhou Rural Commercial received a balance sheet score of 74, the average of its peers stands on 73.0.

  •  603323
  •  Peers average
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
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 41 80 56 95 80 77 19 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 66 72 55 62 78 73 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

Income Statement Analysis

Jiangsu Suzhou Rural Commercial appears likely to maintain its strong income statement metrics, especially Revenue Efficiency. Jiangsu Suzhou Rural Commercial reported highly encouraging numbers for its revenue efficiency. This parameter often affects companies in the same industry and market capitalization by up to 2.3%. Their revenue efficiency, specifically in contrast to their industry peers', should support a positive movement in the company's stock price. Consequently, their revenue efficiency received a grade of 84. That said, one metric, Return Factors, stood out as strongly negative. In this filing, Jiangsu Suzhou Rural Commercial reported a return on equity (ROE) ratio of 9.3, which represents a growth of 5.2%. This metric might have a 12.5 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. Consequently, their return factors received a grade of 77. their income statement received an overall score of 73.

Parameter Value Change Score
Total Revenues 2,557.7 -2.3% 84
Return on Equity 9.3 5.2% 77
* All values are TTM

The below chart describes Jiangsu Suzhou Rural Commercial's performance as reflected on its income statement with respect to its peers. While Jiangsu Suzhou Rural Commercial received a income statement score of 73 , the average of its peers stands on 68.0.

  •  603323
  •  Peers average
Name Market Cap Revenue Momentum Earning Movement Return Factors Momentum Income Statement mc_sort Hidden
China Merchants Bank Co., Ltd. 1.1T 58 68 61 63 0 1
Industrial Bank Co., Ltd. 402.2B 48 67 73 67 1 1
Shanghai Pudong Development Bank Co., Ltd. 233.9B 80 67 54 61 2 1
China Everbright Bank Company Limited 160.4B 69 67 61 63 3 1
China Minsheng Banking Corp., Ltd. 150.8B 85 67 55 62 4 1
Bank of Nanjing Co., Ltd. 111.2B 48 65 74 66 5 1
Bank of Jiangsu Co., Ltd. 100.3B 48 69 80 71 6 1
Bank of Beijing Co., Ltd. 95.8B 63 68 50 59 7 1
Bank of Shanghai Co., Ltd. 92.8B 66 67 61 64 8 1
Bank of Hangzhou Co., Ltd. 85.0B 48 66 82 70 9 1
Hua Xia Bank Co., Limited 79.1B 61 67 61 63 10 1
Bank of Chengdu Co., Ltd. 61.3B 44 68 75 68 11 1
Bank of Changsha Co., Ltd. 31.4B 57 68 58 62 12 1
QILU BANK CO., LTD. 22.4B 50 68 76 69 13 1
Bank of Guiyang Co.,Ltd. 21.2B 69 67 58 62 14 1
Jiangsu Changshu Rural Commercial Bank Co., Ltd. 20.6B 52 71 77 71 15 1
Bank of Xi'an Co.,Ltd. 16.2B 47 64 58 56 16 1
Xiamen Bank Co., Ltd. 15.6B 48 68 59 62 17 1
Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co.,Ltd 12.2B 66 68 76 70 18 1
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 81 71 55 60 19 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 54 69 61 64 20 1
Ping An Bank Co., Ltd. 281.2B 53 68 81 72 21 1
Bank of Ningbo Co., Ltd. 225.7B 55 68 76 70 22 1
Bank of Suzhou Co., Ltd. 22.1B 53 66 58 60 23 1
Qingdao Rural Commercial Bank Co., Ltd. 18.4B 62 67 57 61 24 1
Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd 11.1B 64 67 79 71 25 1
Jiangsu Jiangyin Rural Commercial Bank Co.,LTD. 9.3B 51 68 77 70 26 1

Cash Flow Analysis

Jiangsu Suzhou Rural Commercial appears likely to maintain its strong cash flow metrics and momentum going forward. Jiangsu Suzhou Rural Commercial's management was effective in improving their net cash flow, which now sits at -1011.4 and represents a -288.9% change from the previous report. The company is headed in the right direction regarding business priorities, exhibiting prudent net cash flow management and growth. Consequently, their net cash flow movement received a grade of 85. Also, Jiangsu Suzhou 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 -245.9, which represents a -10.7% change from the last period. The company appears to be headed in the right direction regarding resource allocation, exhibiting prudent capital expenditure growth compared to its peers. The company's CapEx movement, therefore, received a grade of 56. However, one discouraging result, Free Cash flow, stood out. Free cash flow numbers published by Jiangsu Suzhou Rural Commercial were -1.0, which was a 66.5% change from the previous filing. Companies in the same sector and market capitalization will usually be affected by up to 9.3 percent by this parameter. their free cash flow situation appears to be much weaker than their peers. Management needs to do a better job balancing cash flow, asset growth, and resources allocations in general. Disappointing results in free cash flow often lead to negative pressure in stock prices, so we rated their free cash flow with a score of 50. Because their management is doing an excellent job managing these critical metrics, the cash_flow was given a score of 70.

Parameter Value Change Score
Net Cashflow -1,011.4 -288.9% 85
Capital Expenditure -245.9 -10.7% 56
Free Cashflow -1.0 66.5% 50
* All values are TTM

The below chart describes Jiangsu Suzhou Rural Commercial's performance as reflected on its cash flow with respect to its peers. While Jiangsu Suzhou Rural Commercial received a cash flow score of 70, the average of its peers stands on 69.0.

  •  603323
  •  Peers average
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
Jiangsu Zijin Rural Commercial Bank Co.,Ltd 10.5B 46 99 50 67 53 19 1
Wuxi Rural Commercial Bank Co.,Ltd 10.3B 82 52 84 69 79 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

This report is intended for general guidance and information purposes only and under no circumstances is tailored to a specific factor or variable related to its reader or intended to be used or considered as financial or investment advice, a solicitation of any offer, a recommendation, or an offer to sell or buy any securities or other form of a financial asset. For the full disclaimer, click here.