Bank of Tianjin (1578)

Company Analysis:

The Bank of Tianjin is the only city commercial bank with its head office in Tianjin. According to the Banker magazine, it ranked 219th among the 1000 largest banks in the world in terms of tier one capital as of December 31, 2014. ranked 32nd among all Chinese commercial banks on the list and 9th among Chinatown commercial banks.

As at September 30, 2015, the total assets, loans and advances and total deposits of the Bank of Tianjin were RMB 545.7 billion, RMB 185.7 billion and RMB 328.4 billion respectively. From 2012 to 2014, total assets and net profit increased at a compound annual growth rate of 25.8% and 29.6%, respectively, higher than the average compound annual growth rate of 21% and 16.6% for China's city commercial banks in the same period.

During the three years ending 2012, 2013 and 2014 and the nine months ended September 30, 2015, the Bank of Tianjin has been in the forefront of Tianjin banking industry in terms of public deposits in Tianjin and ranked first in Tianjin banking industry as of September 30, 2015. In addition, Bank of Tianjin is the leading bank in Tianjin in the business of small and medium-sized enterprises. As of December 31, 2012, 2013 and 2014 and September 30, 2015, the loans of small and medium-sized enterprises accounted for 53.9%, 60.5%, 62.7% and 69.5% of the total loans of banks and companies, respectively.

As of September 30, 2015, the non-performing loan ratio of the Bank of Tianjin was 1.49%, which was lower than the overall non-performing loan ratio of 1.59% of all Chinese commercial banks as of the same day. According to the China Banking Regulatory Commission, as of September 30, 2015, the provision coverage rate was 199.79%, higher than 190.79% of all Chinese commercial banks as of the same date.

As of September 30, 2015, the Bank of Tianjin had 306 business organizations. it includes one head office, seven first-level branches, two second-level branches, six central branches, 242 traditional branches, 44 community branches, a small enterprise financial service center, a village bank and its two subordinate branches. As of September 30, 2015, there were 241 business offices in Tianjin and 65 outside Tianjin, covering six provinces and municipalities directly under the Central Government, including Tianjin, Beijing, Shanghai, Hebei, Shandong and Sichuan provinces.

The net tangible assets per share is HK $7.30-7.62, with a price-to-earnings ratio of 2015 times earnings.

Subscription suggestions:

Tianjin Bank and China Zheshang Bank City Commercial Bank will begin their initial public offerings one after another. Tianjin Bank is the only commercial bank in Tianjin, which was established in 1996 and its major shareholder is Tianjin Port Free Trade Zone. The Bank of Tianjin benefits from the Bohai Rim Economic Development Zone and the Tianjin Free Trade Zone, has a large number of science and technology growth enterprises, and receives more government subsidies, so the compound growth rate of 2014-2017 is expected to reach 41.4%. However, the pricing is 1.05-1.17 times the net city ratio of 2015, which is relatively high, and the subscription proposal is prudent.

This equity company does not offer margin subscription.