\u3000\u3000 Xiamen Bank Co.Ltd(601187) (601187)
Event:
On January 27, Xiamen Bank Co.Ltd(601187) released the performance express for 2021. In 2021, it realized an operating revenue of 5.28 billion yuan, a year-on-year decrease of 5.0%, and a net profit attributable to the parent company of 2.162 billion yuan, a year-on-year increase of 18.7%. The weighted average return on net assets was 10.95%, a year-on-year decrease of 0.28pct.
Comments:
Revenue growth slowed down under the high base effect. In 2021, Xiamen Bank Co.Ltd(601187) operating revenue and net profit attributable to parent company increased by – 5.0% and 18.7% year-on-year respectively, with a year-on-year growth rate of 8.08 and 1.96 PCT respectively compared with the first three quarters of 21 years. Among them, the year-on-year growth rate of 21q4 single quarter revenue was – 21.6% and a quarter on quarter decrease of 61.74 PCT. The year-on-year growth rate of the company’s revenue decreased compared with the first three quarters of 2021, mainly because the revenue from Bill asset management business recovered by the company through litigation raised the base in the same period of last year, and the revenue in 20q4 increased significantly month on month (QoQ + 76.8%). Excluding this incomparable factor, the company’s revenue grew by 8.8% year-on-year in 2021, an increase of 5.71 PCT compared with the first three quarters of 21 years. In terms of profit growth, the year-on-year growth rate of net profit attributable to the parent company in 2021 remains relatively high. It is expected that the improvement of credit cost will be the main driver, and the year-on-year growth rate of operating expenditure will be – 22.5%, a decrease of 9.64pct compared with the first three quarters of 2021.
The scale expansion has weakened, but it still maintains a certain intensity. At the end of 2021, Xiamen Bank Co.Ltd(601187) total assets increased by 15.5% over the same period of last year to 329.306 billion yuan. The year-on-year growth rate decreased by 2.40pct quarter on quarter, but it was basically the same as the same period of the previous year, and was significantly higher than the growth rate in 2019 (YoY + 6.2%).
Asset quality continued to improve. At the end of 2021, Xiamen Bank Co.Ltd(601187) NPL ratio decreased by 1bp to 0.91% compared with that at the end of 21q3, and continued to be below 1%, which is a low level for listed banks; The provision coverage rate was 370.3%, basically the same as that at the end of 21q3. The company’s non-performing loan ratio has shown a continuous positive trend since 2018, with the overall provision thickness ranking at the forefront of the industry and strong risk offset ability. Earnings forecast, valuation and rating. Xiamen Bank Co.Ltd(601187) is one of the most comprehensive urban commercial banks in Fujian Province
With the sustainable development of the Western Economic Zone, the company’s business location advantages will be further highlighted. At the same time, the company has excellent asset quality and high provision coverage, which makes the company have strong risk offset ability. Maintain the EPS forecast of Xiamen Bank Co.Ltd(601187) from 2021 to 2023 at 0.79/0.92/1.04 yuan respectively, and the Pb valuation corresponding to the current stock price is 0.87/0.79/0.72 times respectively, maintaining the “overweight” rating.
Risk tip: credit easing is less than expected, and the downward pressure on the economy is increasing
