\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Summary of express: 1. The performance maintained high-quality and stable growth, and the net profit attributable to the parent increased by nearly 30% year-on-year. Revenue growth was steady, with a year-on-year growth rate of 18.4%. Net profit also maintained an upward trend and achieved a high growth of 29.8% year-on-year; The two-year compound growth rate was at a high level of 18.4%. 2. In the fourth quarter, credit maintained a high growth, and the scale of new loans in the whole year increased significantly compared with last year. In the 21st year, the new loans increased by 104.9 billion yuan, an increase of 35.3 billion yuan compared with the new scale in the 20th year, and the new deposit scale on the liability side remained not weak throughout the year. The annual deposit increased by 112.6 billion, which was better than that of the same period last year under the background of increasing pressure on the industry to attract deposits in 21 years, showing the company’s good location advantages and customer base. 3. The asset quality has maintained a high margin of safety, and the non-performing rate has decreased steadily: the non-performing rate has continued to decline since 2016 and is now at a low level since 2012. At the end of 2021, the non-performing rate was 0.86%, down 4bp month on month. The non-performing balance decreased slightly compared with the third quarter. The company’s provision coverage rate was 567.71%, up 8.29% month on month; The loan allocation ratio was 4.88%, down 17 BP month on month.
Investment suggestion: 2021e, 2022epb1 12X/1.00X； PE9. 61x / 8.24x (City Commercial Bank pb0.79x / 0.71x /; pe6.91x / 6.07x), the company has stable operation, excellent asset quality and high safety margin. With significant regional advantages, the company takes Hangzhou as its base and fully infiltrates Zhejiang Province. The six branches are strategically deployed in developed economic circles such as the Yangtze River Delta, the Pearl River Delta and the Bohai Bay, further opening up the development space of the company. Large retail financial business also has growth soil, including the growth of consumer credit on the asset side and the development of wealth management business on the capital side. It is recommended to pay active attention.
Note: according to the performance express, we fine tune the profit forecast. It is estimated that the revenue and net profit attributable to the parent company in 20222023 will be 37.719/44.474 billion and 10.631/12.333 billion (the previous values were 36.830/43.426 billion and 10.467/12.279 billion).
Risk tip: the macro economy is facing downward pressure, and the bank performance is lower than expected.
