Report
EUR 88.49
For Business Accounts Only
In this note, we discussed updated numbers for the six months ended in June 2019. We think the company is at the inflexion point of deteriorating financials. Despite the growth of assets in 2Q2019, the company’s net interest income is flat QoQ and net profit declined QoQ. The silver lining is the improving NPL ratio.
At 1.1 times the book, we think the company’s valuation is rich as compared to other city commercial banks, which are trading at an average trailing price to book of 0.6x. We would avoid the deal.
Bank of Guizhou (贵州银行) IPO - Rich valuation at inflexion point
Bank of Guizhou has been book building to raise up to USD 737 million. There is no cornerstone investor in the deal unlike the preceding listing of Jinshang Bank.In this note, we discussed updated numbers for the six months ended in June 2019. We think the company is at the inflexion point of deteriorating financials. Despite the growth of assets in 2Q2019, the company’s net interest income is flat QoQ and net profit declined QoQ. The silver lining is the improving NPL ratio.
At 1.1 times the book, we think the company’s valuation is rich as compared to other city commercial banks, which are trading at an average trailing price to book of 0.6x. We would avoid the deal.
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ke Yan
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