\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
The release of profits accelerated, and the annual net profit attributable to the parent company increased by nearly 30% year-on-year.
The company disclosed the performance express in 2021. The annual revenue and net profit attributable to the parent company reached 29.361 billion yuan and 9.261 billion yuan, with a year-on-year increase of 18.36% and 29.78% respectively. Compared with the first three quarters, the year-on-year growth rate decreased slightly by 1.6pct and increased by 3.62pct respectively. The weighted average roe of the whole year reached 12.33%, with a year-on-year increase of 1.19pct.
The company’s performance continued its high growth trend, and the year-on-year growth rate of net profit attributable to the parent ranked second among the banks with disclosed performance, hitting a new high in recent 9 years, and the operating efficiency continued to improve. For a longer period of time, the compound growth rates of revenue and net profit attributable to the parent company from 2019 to 2021 were 17.11% and 18.44% respectively, which remained at a high level. The two-year compound growth rate of net profit attributable to the parent company still ranked second among the banks with disclosed performance, showing significantly better performance growth than the peers.
The pace of credit expansion accelerated quarter by quarter, with strong regional credit demand
At the end of 21q4, the total assets of the company increased by 18.93% year-on-year, with a year-on-year growth rate of 0.78pct lower than that at the end of 21q3; However, it is worth noting that the year-on-year growth rate of total loans at the end of 21q4 was 2.09pct higher than that at the end of 21q3, and the year-on-year expansion rate of credit was accelerated quarter by quarter. The company’s outlets are mainly distributed in the developed economic circle dominated by Zhejiang Province, and the active private economy has spawned strong financial demand. Taking Hangzhou as an example, the proportion of private economic added value in GDP has increased year by year since 2015 and reached 61.20% by 2020.
While the asset side maintained a high growth rate, the company’s debt side expansion also maintained a synchronous rhythm. At the end of 21q4, the company’s total liabilities increased by 19.49% year-on-year, higher than the year-on-year growth of total assets and total loans. Although the year-on-year growth rate of total deposits is lower than that of total loans, it has improved significantly since the third and fourth quarters. By the end of 21q4, the deposit loan ratio had increased to 72.60%, and the loan investment was stable and good.
The non-performing rate hit a ten-year low, and the provision thickness reached a record high
While maintaining the expansion of assets, the company strictly abides by the risk bottom line. By the end of 21q4, the non-performing rate of the company was 0.86%, which continued to decline by 4bp compared with the end of 21q3, and the non-performing rate has reached a new low in ten years.
At the same time, the company’s provision coverage has reached 567.71%, the highest level in history, and is expected to remain the first listed bank. In fact, the company’s provision coverage increased by 311.71 PCT in the three years from 2019 to 2021. On the one hand, the improvement of provision thickness is due to the continuous optimization of asset quality, on the other hand, the continuous improvement of operating efficiency. Under the effect of “increasing revenue and reducing expenditure”, the provision coverage has been greatly improved and the risk resistance has been strengthened. Investment suggestion: benefit first demonstration area construction, “2255” strategy to build a retail small and micro growth pole. The company’s “2255” strategy takes “bigger retail” and “better small and micro” as the growth pole. In particular, the development of small and micro business is not only in line with the current policy orientation, but also in line with the reality of the developed private economy in the Yangtze River Delta. At the same time, with the construction of Zhejiang common prosperity demonstration area, regional financial demand is expected to remain active, and there is a large space for credit demand. At present, the company’s 15 billion yuan convertible bonds are in the stock conversion period. According to the static calculation, if the stock conversion is completed, the core Tier-1 capital adequacy ratio can be increased by 1.81 PCT, effectively supporting the credit expansion. We are optimistic about the growth of the company’s future performance. It is expected that the net profit attributable to the parent company will increase by 18.96% and 18.34% year-on-year from 2022 to 2023. At present, the corresponding company’s Pb (LF) is 1.08 times, maintaining 1.5 times the target Pb in 2022, and the corresponding target price is 20.04 yuan, maintaining the “buy” rating.
Risk warning: the credit demand is weak, the credit risk fluctuates, and the retail transformation is less than expected. The performance express is the preliminary calculation result, and the specific financial data is subject to the annual report disclosed by the company
