Financial report highlights: 1, performance improved quarter by quarter, 1Q net profit achieved double-digit growth. In 2021, the annual revenue growth rate became positive, and the PPOP growth rate improved 6.1% from the same period last year. The performance in the first quarter of 22 continued to improve, and the revenue growth rate widened to + 3.5% compared with the same period last year. The asset quality of 1Q22 has improved significantly, the reserve provision has slowed down and released profits, and net profit has achieved double-digit growth, with year-on-year increases of 5.1 per cent for the whole of 2021 and 10.6 per cent in the first quarter of 22. Deposits and loans were booming in the second and first quarter. Credit got off to a good start in the first quarter to support a high increase in loans. 4Q and 1Q increased by 9.65 billion in the first quarter compared with 1.8% and 6.9% respectively, which was better than that in the same period last year (6.51 billion in the same period last year). Public loans got off to a good start in the first quarter, with an increase of 10.16 billion in the single quarter, a month-on-month increase of + 11.2% and a share of 49.1%. Deposit 1Q got off to a good start, rising 11.8% from + 1.1% in the fourth quarter to + 1.1% in the fourth quarter, with an increase of 18.4 billion in a single quarter, an increase of 4.4 billion over the same period in 21 years, and the proportion of interest-bearing liabilities rose to an all-time high of 84.1%. 3. The asset quality is improved by 1Q month-on-month. Bad: the non-performing rate in the first quarter was 1.35% lower than the previous quarter 10bp. The annualized net production rate of undesirable products in a single quarter is lower than that of the previous quarter, which is lower than that of 25bp to 0.24%. From the perspective of future adverse pressure, concern loans accounted for a low and slightly upward, 1Q22 concern loans accounted for 0.72%, attention + non-performing loans accounted for 2.07%, there is little pressure on asset quality in the future. Overdue: in 2021, the overdue rate is 1.16%, and loans overdue for more than 90 days account for 0.70%, which is generally better than that of half a year. Provision: in the first quarter, the provision coverage rate is + 9.39% to 241.41% from the previous quarter, and the loan ratio is 3.27% from the downlink 9bp. The risk offset capability is generally sound.

Underreporting: 1Q22 net interest income is-2.3% month-on-month, mainly due to pressure on interest spreads affected by asset structure. It is mainly affected by the change of the rate of return on the asset side, and the cost on the debt side decreases quarter by quarter. The rate of return on the end of assets rose in the fourth quarter compared with the previous quarter, 13bp 12bp in the first quarter, which is expected to be mainly affected by the asset-side structure and repricing. From a structural point of view, although loans increased by 6.9% month-on-month, they were mainly concentrated in public loans, while the scale of high-yield retail loans fell, and the proportion of total loans and retail loans declined. Looking back, retail credit is expected to pick up in the second and third quarter, driving the asset-end yield to stabilize, the lowering of the debt-side deposit pricing ceiling can further slow down the company's debt costs, and interest spreads are expected to remain stable.

Investment advice: the company has high growth and low valuation. Company 2022E, 2023E PB 0.62X 6.49X/6.70X, company 2022E, 2023E, 0.62X 6.49X/6.70X, company 2022E, 2023E, 0.62X pacemaker, 0.57X scarp PE6.36X max 5.71X (Agricultural Bank of China 0.68X Accord 0.62X 6.49X/6.70X), the company deeply ploughs the native land of Nanjing, adheres to the market positioning of "serving agriculture, rural areas and farmers, serving small and medium-sized enterprises, serving urban and rural areas", and goes deep into the process of urbanization in Nanjing through channels. Over the past 17 years, the company's business has gradually returned to its origin, the cost-side cost management and control ability is good, the regional economic vitality in Nanjing is strong, and the asset quality is stable and good.

Profit forecast adjustment: we adjust the profit forecast according to the 2021 annual report and the first quarterly report. It is estimated that the operating income of 2022Universe 2023Universe in 2024 will be 47.58384 million yuan (the previous value is 60.42), with a growth rate of 5.7%, 13.1% and 14.9%, and the net profit of its mother will be 16.6918.582.051 billion yuan (the previous value is 16161745 million), with a growth rate of 10.2% 11.3% and 10.4%. Core hypothesis adjustment: 1. Considering that the policy continues to guide financial institutions to give profits to entities, and the industry net interest margin is under pressure, adjust the company's loan yield to 4.60%, 4.50%, 4.50%, 4.50%, and 3.15%, 3.10%, 3.10%, 3.10%. two。 Corporate deposits are facing competitive pressure, the interest rate is increased, and the deposit interest rate is adjusted to 2.20%, 2.20%, 2.20%, 2.20%. 3. The quality of the company's assets is good, and the provision expenditure / average loan is adjusted to 0.90%, 0.95%, 1.00%.

Risk hint: the economic downturn is higher than expected, and the company's operation is not as expected.