\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 036 China Merchants Bank Co.Ltd(600036) )
Key elements of the report:
On March 19, 2022, China Merchants Bank Co.Ltd(600036) issued the annual performance report for 2021.
Key investment points:
High increase in revenue and profit, re optimization of cost income: in 2021, the operating revenue was 331253 billion yuan, and the net profit attributable to the parent company was 119922 billion yuan, with a year-on-year increase of 14.04% and 23.2% respectively. The non-performing rate was 0.91%, a year-on-year decrease of 0.16 percentage points. The cost income ratio is 33.12%.
The assets grew steadily and the net interest margin narrowed slightly: at the end of 2021, deposits increased by 12.7%, the proportion of demand deposits with average balance was further increased, the structure of core liabilities was further optimized, and the rise of deposit costs was effectively controlled. On the whole, through the further optimization of asset and liability structure, the annual net interest margin decreased by only 1bp year-on-year, and there was a trend of month on month stabilization in the fourth quarter. It is expected that the net interest margin will remain under pressure in 2022. China Merchants Bank will further increase the adjustment of asset liability structure and stabilize the interest margin.
Large wealth management business achieved rapid growth: in 2021, net handling fee income increased by 18.82%, including wealth management business income increased by 29% and asset management business income increased by 57.52%. In the wealth management business, the agency fund income increased by 36.2%, and the agency insurance income increased by 42.8%. The income from agency fund, insurance and trust business accounted for 34.4%, 22.9% and 21% respectively.
Asset quality continued to improve: at the end of 2021, the non-performing rate decreased to 0.91%, continuing the downward trend. The generation rate of non-performing assets was improved synchronously, and the provision coverage was significantly improved. The fourth quarter increased by 40.73 percentage points month on month, reaching 483.87%. The risk offset ability was strong.
Profit forecast and investment suggestions: China Merchants Bank Co.Ltd(600036) 2021: the annual profit increased sharply and the asset quality continued to improve. The big wealth management business has achieved rapid growth and formed a certain high base. In the future, on the basis of giving full play to its channel advantages, China Merchants Bank will further improve its advantages in investment research and asset allocation, and promote the rapid growth of big wealth management business. It is predicted that the EPS in 2022 / 23 will be 5.30 yuan / 6.02 yuan. According to the closing price of China Merchants Bank Co.Ltd(600036) a shares on March 18, it will be 46.17 yuan, corresponding to 1.43 times Pb in 2022, maintaining the overweight rating.
Risk factors: affected by covid-19 epidemic, the global economic recovery was less than expected, resulting in sharp fluctuations in bank assets.
