\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 998 China Citic Bank Corporation Limited(601998) )
Abstract: 601 the net profit attributable to the parent company in the 19982021 annual report was 55.641 billion, a year-on-year increase of 13.6%. On a year-on-year basis, the main scale, provision, non interest and other contribution performance. Net interest income decreased by 1.7% year-on-year, net handling fee income and other non interest income increased by 24.4% and 35.2% year-on-year respectively, and operating income and profit before provision increased by 5.1% and 1.2% year-on-year respectively. Total assets increased by 7.1% over the beginning of the year, and loans and deposits increased by 8.6% and 4.8% respectively over the beginning of the year.
The performance was better than expected, and the medium income continued to grow rapidly. The profitability and capital level of the annual report increased year-on-year, the performance growth was better than expected, and the main provisions, handling charges and investment related non interest contributed to the growth of good performance. The most prominent performance of the annual report is that the handling fee continued to perform positively, with a year-on-year growth rate of 24.4%, a single quarter increase in the fourth quarter to 40.5%, and the investment non interest also increased rapidly. The non interest led to the acceleration of the revenue side, and the operating revenue increased by 8.3% in the fourth quarter. In addition, asset quality continued to improve, and related indicators such as non-performing assets improved; The net interest margin may continue to decline in the fourth quarter, and the decline of net interest margin may narrow in the second half of the year. The incremental provision decreased, the stock provision decreased slightly, and the cost growth increased.
Improve profitability and capital level. Roae was 10.73%, with a year-on-year increase of 0.62 percentage points and roaa of 0.73% 72%, with a year-on-year increase of 3bp. core
Tier 1, capital adequacy ratio and tier 1 capital adequacy ratio were 8.85% / 10.88% / 13.53% respectively, with a year-on-year increase of 11bp / 7bp / 52bp.
It is expected that the single quarter net interest margin in the fourth quarter may still narrow, and the decline in the second half of the year is significantly narrower than that in the first half of the year.
The annual net interest margin was 2.05%, a year-on-year decrease of 21bp, a decrease of 4bp compared with the medium term and a decrease of 1bp compared with the first three quarters. The decline narrowed in the second half of the year. In terms of splitting, the narrowing of deposit loan interest margin may still be the main reason to suppress the net interest margin. The loan yield is 4.99%, which is 6 bp lower than that in the first half of the year, the deposit cost is 2%, which is 1 bp higher than that in the medium term, and the main corporate demand cost is 1.3%, which is 2 bp higher than that in the medium term.
Non interest increased by 24.4% year-on-year and 40.5% year-on-year in a single quarter.
The main contribution comes from the rapid growth of financial income, credit card handling fees, letters of credit and other business income. We adjusted the company’s EPS to 1.24/1.36 yuan in 2022 / 2023. At present, the corresponding price to book ratio of the stock price is 0.38x/0.34x, the dividend rate is 6.8%, the valuation is low, the dividend is high, the valuation excessively reflects pessimistic expectations, the company’s stock problems continue to be resolved, the business has also improved, the medium and long-term value is prominent, and the overweight rating is maintained.
Main risks of rating
The economy fell sharply, and the deterioration of asset quality exceeded expectations.
