Breaking Down Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd Financial Health: Key Insights for Investors

Curious whether Jiangsu Zhangjiagang Rural Commercial Bank is a bargain or a risk for investors? The bank posted quarterly revenue of 808.56 million CNY (Q2 2025) and a TTM revenue of 3.80 billion CNY, with 2024 annual revenue at 3.74 billion CNY and revenue per employee near 1.67 million CNY across 2,452 staff - while the market values the company at 10.90 billion CNY (P/S 2.87) and a P/E of 6.18 on EPS of 0.77 CNY; profitability shows a nine‑month net income of 1.87 billion CNY and ROE at 9.55% despite a 12.09% decline in net interest income (TTM June 2025) and a rising NPL ratio to 1.01%, counterbalanced by a 30.3% year‑over‑year surge in non‑interest income, a 4.26% dividend yield (ex‑dividend Oct 15, 2025) and a 52‑week price band of 3.93-4.93 CNY - read on to assess how these concrete metrics translate into risk, valuation and growth prospects.

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Revenue Analysis

• Quarter ending 2025-06-30 revenue: 808.56 million CNY (q/q growth: +4.38%).
• Trailing twelve months (TTM) revenue: 3.80 billion CNY (y/y growth: +3.49%).
• Full-year 2024 revenue: 3.74 billion CNY (2024 vs 2023: +4.50%).
• Revenue per employee (as of 2024-12-31): ~1.67 million CNY; total employees: 2,452.
• Price-to-Sales (P/S) ratio: 2.87.
• Market capitalization: 10.90 billion CNY.

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Profitability Metrics

• Net income (9M 2025): 1.87 billion CNY (+5.42% YoY)
• Basic EPS: 0.77 CNY; P/E ratio: 6.18
• Return on equity (ROE): 9.55%
• Net interest income (9M 2025): 2.29 billion CNY (down from 2.50 billion CNY in 9M 2024)
• Net interest margin (NIM): narrowing - signaling pressure on core lending profitability
• Net margin: 47.76%

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Debt vs. Equity Structure

• Tier 1 capital ratio: Not explicitly stated in available sources.
• Capital adequacy ratio (Total CAR): Not specified in available sources.
• Leverage ratio (debt-to-equity/proportion of debt to total funding): Not provided.
• Total liabilities and shareholders' equity: Specific figures not detailed in available information.
• Debt-to-equity ratio: Not available.
• Capital structure alignment with regulatory requirements: Not specified.

• Interpretation guidance: In the absence of disclosed ratios, investors should seek the bank's latest audited balance sheet, regulatory filings (CBIRC reports), or quarterly statements to compute CET1, Tier 1, total CAR, leverage ratio, and debt-to-equity.
• Next steps for investors: Request or locate consolidated balance sheet line items - total equity, total liabilities, Tier 1/Tier 2 breakdown - to produce the missing ratios and compare them to domestic regulatory thresholds.

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Liquidity and Solvency

• Non-performing loan (NPL) ratio: 1.01% at end-2024 (up from 0.93% at end-2023)
• Liquidity Coverage Ratio (LCR): not provided in available disclosures
• Net Stable Funding Ratio (NSFR): not provided in available disclosures
• Loan-to-deposit ratio: not specified
• Solvency ratio (long-term obligations metric): not detailed
• Capital adequacy ratio: not explicitly stated
• Compliance with regulatory liquidity and solvency requirements: not specified

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Valuation Analysis

Key valuation metrics and market context for Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ):

• Market capitalization: 10.90 billion CNY
• Trailing P/E: 6.18 - indicates earnings are being valued modestly by the market
• Forward P/E: 6.03 - suggests modest expected earnings growth priced in
• EPS (TTM): 0.77 CNY
• P/S ratio: 2.87 - market valuation relative to revenue
• P/B ratio: not available in the sources reviewed
• Dividend yield: 4.26% (ex-dividend date: October 15, 2025)
• 52-week price range: 3.93-4.93 CNY

Valuation context and investor considerations:

• Relative affordability: A trailing P/E of 6.18 paired with a forward P/E of 6.03 positions the bank as relatively inexpensive on an earnings basis compared with many peers, while the 4.26% dividend yield provides immediate cash return potential.
• Revenue vs. price: P/S of 2.87 shows the market assigns moderate value to the bank's revenue base; reconcile this with profitability and margin trends before sizing positions.
• Missing P/B: The absence of a reported P/B ratio in sources limits direct balance-sheet valuation comparisons common for banks; investors should obtain book value per share from financial statements for a complete picture.
• Price range & volatility: 52-week range (3.93-4.93 CNY) signals recent trading volatility that may present entry points depending on risk tolerance and timing.

For a deeper look at shareholder composition and investor behavior, see: Exploring Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd Investor Profile: Who's Buying and Why?

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Risk Factors

• Declining core earnings: Net interest income fell 12.09% on a trailing twelve‑month basis ending June 2025 versus the prior year, signaling pressure on lending spreads and/or volume.
• Asset quality deterioration: The non‑performing loan (NPL) ratio rose to 1.01% at end‑2024 from 0.93% the prior year, indicating a modest worsening in credit performance.
• Concentration risk: Material exposure to the struggling real estate sector could increase volatility in loan loss experience and collateral recovery.
• Liquidity sensitivity: A reliance on short‑term funding sources elevates rollover and market‑liquidity risk during stress periods.
• Capital transparency gap: Key solvency metrics such as the latest CET1, Tier 1, and total capital ratios are not specified here, making loss‑absorption capacity hard to quantify.
• Regulatory and macro risks: Exposure to regulatory shifts and cyclical swings in the Chinese economy can materially affect earnings and provisioning needs.

• Investor implications: heightened monitoring of quarterly NII trends, NPL movements, provisioning cadence, funding composition and any disclosed capital ratio changes is warranted.
• Information sources: for context on the bank's corporate background and business model see Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd: History, Ownership, Mission, How It Works & Makes Money.

Jiangsu Zhangjiagang Rural Commercial Bank Co., Ltd (002839.SZ) - Growth Opportunities

• Non-interest income acceleration: non-interest income grew 30.3% year-over-year in H1 2025, evidencing a deliberate pivot toward fee-based services (wealth management, agency services, card & transaction fees).
• Investment income expansion: investment income now represents roughly 30% of total revenue in H1 2025, up from about 12% in 2021 - reflecting a material reweighting of revenue sources toward securities and investment returns.
• Wealth management traction: the scale of wealth management products sold on behalf of third parties rose 155% year-over-year, demonstrating strong distribution capability and client uptake.
• M&A and branch strategy: management is evaluating strategic mergers and acquisitions to broaden market presence and realize scale/efficiency gains in the Yangtze River Delta and adjacent provinces.
• Digital transformation: targeted investments in digital banking (mobile apps, online wealth platforms, remote onboarding, and API integrations) aim to boost customer acquisition, cross-sell rates, and cost-to-income improvement.
• Rural market penetration: focused initiatives to deepen lending and deposit services in underserved rural counties to diversify loan book growth and capture deposit relationships.

• Revenue diversification: higher investment and fee income should reduce sensitivity to net interest margin compression; monitor sustainability and risk profile of investment income sources.
• Profitability leverage: fee income and scale from digital channels can improve operating leverage and lower cost-to-income if customer acquisition costs decline.
• Asset-liability dynamics: growth in investment income and wealth management intermediation may alter liquidity and market-risk exposures-investors should track securities holdings, duration positions, and fair-value volatility.
• M&A execution risk/reward: successful acquisitions could accelerate scale and regional penetration, but integration and credit quality risks merit attention.
• Rural lending opportunities: expanding into underserved areas can broaden loan growth and deposit bases but requires robust credit risk management and localized underwriting capabilities.
• Regulatory and distribution considerations: continued growth in third-party wealth products and investment income will be subject to product regulations and distribution compliance; transparency and governance are key.