EAST ASIA SECURITIES COMPANY LIMITED
9/F, 10 Des Voeux Road Central, Hong Kong.
Facsimile: 3608 6132
Analyst: Paul Sham
HONG KONG RESEARCH 3rd December 2010
Chongqing Rural Commercial Bank Co., Ltd. [Stock Code:03618]
Joint Sponsors, Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers
Business : Commercial banking and retail banking services in Chongqing
Total share offer: *2,185,509,601 H shares (24.28% of the enlarged share capital)
Business of Chongqing Rural Commercial Bank (“CRCB”)
Public Offer Placing: Greenshoe:
163,914,000 shares (7.5%) 2,021,595,601 shares (92.5%) 327,826,440 shares
*Comprising 2,000,000,000 New shares and 185,509,601 Sale Shares
CRCB is the largest bank in terms of total assets and total deposits in Chongqing. As of 30th June 2010, its deposits represented approximately 14.8% of total deposits of all banking institutions in Chongqing. It was also the fourth largest bank in terms of total loans, with 11.6% of total loans of
all banking institutions in Chongqing.
Price: HK$4.50 – HK$6.00 Market Cap: HK$40.5 billion – HK$54.0 billion
Net profit estimate for FY10: RMB2.85 billion
Pro forma fully diluted FY10E PER: 11.86x – 15.81x
Adjusted NTA per share: HK$2.55 – HK$2.88 Staffing: 12,423 (As of 30th June, 2010)
commercial bank established in Western China and the third provincial level rural commercial bank in China after those in Beijing and Shanghai. It is also the 3rd largest amongst rural commercial banks in the PRC and the 21st largest bank in China in terms of total assets.
With nearly 60 years’ operating history in Chongqing, CRCB underwent a series of corporate reorganizations to become a joint stock limited company and a commercial bank in June
HK Public Offer period: 3rd December 2010 – 8th December 2010
Receiving banks: Bank of China (Hong Kong) HSBC Wing Lung Bank
Share registrar: Computershare Hong Kong Investor Services Ltd.
Listing date: 16th December 2010
This report has been prepared solely for information purposes and we are not soliciting any action based upon it. Neither this document nor its contents shall be construed as an offer, invitation, advertisement, inducement or representation of any kind or form whatsoever. The information is based upon information, which we consider reliable, but accuracy or completeness is not guaranteed. Opinions expressed herein are subject to change without notice. At time of this report, East Asia Securities Company Limited has no position in securities of the company or companies mentioned herein, while its group companies may from time to time have interests in securities of the company or companies mentioned herein.