\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 036 China Merchants Bank Co.Ltd(600036) )
The performance growth rate continued to rise, and the non interest business performed well
The company disclosed the annual report of 2021. The annual revenue was slightly higher than that disclosed in the express, and the net profit attributable to the parent was consistent with that disclosed in the express. Among them, the revenue, profit before provision and net profit attributable to the parent company of 21q4 increased by 15.63%, 11.93% and 26.58% respectively year-on-year. The year-on-year growth rate of the company’s revenue was further in 21q4, mainly due to the rise in the growth rate of interest spread business income while the non interest business maintained a high growth rate. Among them, the net interest margin in the fourth quarter showed an upward trend both year-on-year and month on month; The annual non interest business income and net income from handling fees and commissions accounted for 38.44% and 28.51% of the revenue, both maintaining a high and stable level
The net interest margin stabilized and rebounded, and the debt side was significantly optimized
In 2021, the company’s net interest margin was 2.48%, down 1bp year-on-year, of which 21q4 net interest margin was 2.48%, up 1bp month on month compared with 21q3, and the interest margin stopped the downward trend. The inclination of loan to individual housing makes the yield of retail loans under pressure to a certain extent. Small and micro loans and credit card loans are mainly short-term, and the loan yield is high. However, at the same time, the company insists on selecting high-quality customers in stable industries and with stable income as the main source of customers. In terms of credit cards, the company strengthens the asset management of low-risk customers. Although it reduces the credit yield to a certain extent, it also ensures the stability of asset quality.
Under the pressure of asset side yield, the company continued to strengthen the high-quality growth of deposits. The strong ability to collect deposits has built the company’s core competitive advantage. The cost rate of demand deposits, which accounts for more than 60% of the company, is only 0.7%, leaving sufficient room for improvement on the liability side. The double optimization of public and retail deposits shows the strong living ability of public deposits and the low-cost capital precipitation strength of retail wealth management. In the environment of reducing the financing cost of the real economy, it is expected that the optimization of the deposit side will still carry the banner of stabilizing the net interest margin.
Retail AUM continued to reach a new high, and private AUM grew brightly
By the end of 2021, the company’s retail AUM had reached 10.76 trillion yuan, a record high, with a year-on-year growth rate of 20.33%, and still achieved high growth in the high base. At the same time, the proportion of AUM of high-value customers has increased more significantly. Among retail customers, private customers account for 0.07%, but their contribution to AUM is as high as 31.54%. In fact, in recent years, the year-on-year growth rate of private AUM continued to be higher than that of retail AUM. By the end of 21q4, private AUM had increased by 22.32% year-on-year, showing the attraction of the wealth management ecosystem created by the company to high-value customers.
The overall asset quality was stable, and the provision coverage reached a record high
As of the end of 21q4, the non-performing rate was 0.91%, which continued to decline by 2bp compared with the end of 21q3; The annual non-performing loan generation rate was 0.95%, down 0.31pct year-on-year. While the asset quality remained stable and improved, the write off pressure was reduced. In addition, the ability of risk offsetting continued to increase. The provision coverage rate at the end of 21q4 reached 483.87%, 42.53pct higher than that at the end of 21q3, and 40.73pct higher than that at the end of 21q3, the highest level in history.
Investment suggestion: when the 3.0 mode is started, the flywheel effect of big wealth management is expected to accelerate
In 2021, the company started the retail 3.0 model. Under the favorable credit environment this year, the company is expected to take the lead in enjoying the policy dividend of credit repair and give full play to the flywheel effect of the value cycle chain of big wealth management. We are optimistic about the company’s future performance growth. It is expected that the net profit attributable to the parent company will increase by 17.62%, 14.55% and 13.42% year-on-year from 2022 to 2024. As of the closing on March 18, the company’s Pb (LF) was 1.59 times, maintaining the 2022 target of PB1 95 times, corresponding to the target price of 63.82 yuan, maintaining the “buy” rating
Risk warning: insufficient credit demand, credit risk fluctuation, AUM growth is less than expected.
