\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 036 China Merchants Bank Co.Ltd(600036) )
Core view:
The event company released its annual report for 2021.
The revenue and net profit continued to increase, and the credit cost decreased. In 2021, the company achieved an operating revenue of 331253 billion yuan, a year-on-year increase of 14.04%; The net profit attributable to the parent company was 119922 billion yuan, a year-on-year increase of 23.2%; The annualized weighted roe was 16.96%, with a year-on-year increase of 1.23 percentage points; The basic EPS was 4.61 yuan, a year-on-year increase of 21.64%. The company’s revenue and net profit continued to increase rapidly, and the growth rate was expanded compared with the first three quarters. It is expected to benefit from the improvement of net interest income and the reduction of credit cost. In 2021, the company’s credit cost was 0.7%, a year-on-year decrease of 0.28 percentage points; Credit impairment losses increased by 1.68% year-on-year, less than the growth rate in the first three quarters.
The interest margin remained stable, the proportion of retail loans increased, and the cost advantage of the liability side increased. In 2021, the company realized a net interest income of 203919 billion yuan, a year-on-year increase of 10.21%; The net interest margin was 2.48%, a year-on-year decrease of 0.01 percentage points, which was the same as that in the first three quarters, and the cost advantage of the liability side was enhanced. On the asset side, the loan scale grew steadily, and the proportion of retail loans increased. By the end of 2021, the company’s loan balance was 5570034 billion yuan, an increase of 10.76% over the beginning of the year; Among them, the balance of corporate loans and retail loans increased by 6.63% and 11.44% respectively compared with the beginning of the year, accounting for 40.10% and 53.18% of the average balance of total loans respectively, with changes of – 1.49 and 0.33 percentage points respectively compared with the beginning of the year. On the liability side, the corporate deposit structure was optimized, the proportion of demand deposits increased, the cost rate of time deposits decreased, and the cost advantage was enhanced. By the end of 2021, the company’s deposit balance was 6347078 billion yuan, an increase of 12.77% over the beginning of the year, realizing rapid growth. Among them, demand deposits increased by 13.6% over the beginning of the year, accounting for 66.34% of the total deposits, an increase of 0.48 percentage points over the beginning of the year. In 2021, the average cost rate of time deposits for corporate customers and retail customers was 2.68% and 2.74% respectively, with a year-on-year decrease of 14bp and 18bp respectively, and the average cost rate of overall deposits was 1.41%, with a year-on-year decrease of 14bp.
In 2021, the company achieved a net non interest income of 127334 billion yuan, an increase of 20.75% year-on-year, accounting for 38.44% of operating revenue, an increase of 2.14 percentage points year-on-year. Among them, the income from intermediary business was 94.447 billion yuan, a year-on-year increase of 18.82%, and the achievements in the construction of big wealth management system continued to be released. In 2021, the company’s wealth management fee and commission income was 35.841 billion yuan, a year-on-year increase of 29%; The income from asset management fees and commissions was 10.856 billion yuan, a year-on-year increase of 57.52%; The commission income from custody business was 5.433 billion yuan, a year-on-year increase of 27.75%. The revenue of big wealth management with the above three businesses as the core was 52.13 billion yuan, accounting for 15.74% of the revenue. In addition, by the end of 2021, AUM of retail management customers had exceeded 10 trillion, the custody scale was close to 20 trillion, and the asset management scale had exceeded 4 trillion. The open platform attracted 87 asset management institutions and introduced high-quality products from 8 financial subsidiaries of friendly bank. Other non interest income maintained a high growth. In 2021, the company’s other non interest net income was 32.887 billion yuan, a year-on-year increase of 26.66%. Among them, the investment income (including changes in fair value) was 21.944 billion yuan, a year-on-year increase of 25.38%; The exchange gain was 3.352 billion yuan, a year-on-year increase of 52.18%.
The asset quality has been continuously optimized and the ability of risk offset has been enhanced. By the end of 2021, the non-performing rate of the company was 0.91%, down 0.16 percentage points from the beginning of the year. The provision coverage rate has increased significantly and the risk offset ability has been enhanced. By the end of 2021, the company’s non-performing loan provision coverage was 483.87%, an increase of 46.19 percentage points over the end of the previous year.
The investment suggestion company adheres to the “one body and two wings” and continues to promote the reform and innovation of business model. The moat of retail finance is stable, the value of wholesale finance is obvious, and all businesses remain ahead of the industry with prominent leading value. The transformation of light banks has accelerated, the efficiency of capital use has been optimized, the business cycle has been reduced, and the quality of profits has been continuously improved. The achievements in the construction of the great wealth management system have been released, and the layout of financial technology has been promoted in depth, opening up space for the medium and long-term business growth of the company. We are optimistic about the future development of the company and give it a “recommended” rating. It is predicted that BVPs will be 32.85/37.36/42.63 yuan from 2022 to 2024, corresponding to 1.41/1.24/1.08 times the current share price Pb.
The risk indicates that the macroeconomic growth rate is lower than expected, resulting in the risk of deterioration of asset quality.
