\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Events
On March 10, Bank Of Hangzhou Co.Ltd(600926) disclosed the performance express of 2021, realizing an annual operating revenue of 29.36 billion yuan, a year-on-year increase of 18.4% (9m21:20.0%); The net profit attributable to the parent company was 9.26 billion yuan, a year-on-year increase of 29.8% (9m21:26.2%), and the profit exceeded expectations. The non-performing rate of 4q21 decreased by 4bps to 0.86% quarter on quarter, and the provision coverage increased by 8.3pct to 567.7% quarter on quarter. The asset quality met expectations.
Brief comment
1. The profit growth accelerated and the revenue maintained a high growth, with excellent fundamentals; As a high-quality City Commercial Bank in a high-quality area, strong credit demand will continue to drive the performance growth in Bank Of Hangzhou Co.Ltd(600926) 22 years Bank Of Hangzhou Co.Ltd(600926) annual net profit growth increased by 3.6pct to 29.8% month on month compared with 9m21. The profit growth exceeded our expectations. While the profit increased by nearly 30%, the non-performing rate continued to improve, and the provision coverage continued to increase on the basis of exceeding 500%, showing the accelerated release of profits under the advantage of superior asset quality. The slowdown in revenue is expected to be mainly due to the decline in the growth rate of non interest income, but the net interest income maintained a rapid growth, especially the 4q21 loan balance increased by 4.5% quarter on quarter. From the perspective of new loans per quarter, the new 4q21 loans were only second to 1q21, and the loan demand remained strong. Looking forward to 2022, as a high-quality urban commercial bank located in economically developed regions, strong credit demand will continue to drive the rapid growth of interest income in the future on the scale side; At the same time, there is great room for the development of wealth management in the region, which will continue to promote the rapid growth of medium income. It is expected that Bank Of Hangzhou Co.Ltd(600926) revenue will maintain a high-speed growth of about 20% in the future.
2. The quality of assets has risen to a higher level and remained in the top position Bank Of Hangzhou Co.Ltd(600926) 4q21 NPL rate continued to decline, with a quarter on quarter decrease of 4bps to 0.86%, ranking among the top three listed banks, only higher than Bank Of Ningbo Co.Ltd(002142) and Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) . The provision coverage rate increased by 8.3pct to 567.7% quarter on quarter, with a cumulative increase of 98.2pct throughout the year, and the provision coverage rate ranked first Bank Of Hangzhou Co.Ltd(600926) through the further improvement of asset quality, the clearing of stock risk has entered a new level, the asset quality has stabilized in the first echelon of listed banks, and the solid provision foundation will strongly support the sustainable and high growth of future performance.
3. The equity transfer among major shareholders confirms the strong confidence of major shareholders in the long-term development of Bank Of Hangzhou Co.Ltd(600926) future. After the equity transfer between the former largest shareholder Commonwealth Bank of Australia and Hangzhou state-owned assets at the beginning of this month, Hangzhou municipal government was promoted from the second largest shareholder to the largest shareholder, showing the strong confidence of Hangzhou municipal government in the long-term development of Bank Of Hangzhou Co.Ltd(600926) in the future, and the strategic cooperation between Hangzhou state-owned assets and Bank Of Hangzhou Co.Ltd(600926) will be further deepened in the future, Help Bank Of Hangzhou Co.Ltd(600926) tap potential opportunities and rapid development of regional development.
4. Profit forecast and investment suggestions: the annual performance of Bank Of Hangzhou Co.Ltd(600926) once again confirms the sustainability of high-quality bank performance and high growth. Looking forward to the future, the strong demand for credit and wealth management and superior asset quality in the region will continue to drive the rapid growth of Bank Of Hangzhou Co.Ltd(600926) performance. We expect that the revenue growth rate of Bank Of Hangzhou Co.Ltd(600926) 2022 / 2023 will be 21.0% / 20.1%, and the growth rate of net profit attributable to the parent company will be 26.1% / 26.9%. We will maintain the buy rating and the first combination, with a target valuation of 1.6 times 22-year Pb and a corresponding target price of 21.7 yuan / share. Risk tip: the macro-economy has fallen sharply, causing bank non-performing risk.
