\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 166 Industrial Bank Co.Ltd(601166) )
Revenue growth increased upward, enhanced performance and released confidence
The company disclosed the annual report of 2021, and the performance was consistent with that disclosed in the express. The annual revenue and net profit attributable to the parent company increased by 8.91% and 24.10% respectively year-on-year. Among them, 21q4 revenue and net profit attributable to parent company increased by 11.36% and 26.38% respectively year-on-year. The year-on-year growth rate of the company’s revenue went further in 21q4, mainly because the year-on-year growth rate of interest margin business stopped falling and rebounded while the non interest business maintained a high growth rate. After calculation, the net interest margin in the fourth quarter stabilized and rebounded; In the whole year, the non interest business income and the net income of handling fees and commissions accounted for 34.15% and 19.29% of the revenue. The improvement of the contribution proportion of medium income business can improve the stability of revenue growth.
The net interest margin stabilized and rebounded, and the credit structure continued to be optimized
In 2021, the company’s net interest margin was 2.29%, a year-on-year decline of 7bp, of which 21q4 net interest margin increased by 15bp compared with 21q3, and the interest margin stopped the downward trend. Affected by the real economy and the repricing of housing loans, the yield of corporate and retail loans declined. However, the company has strengthened the transformation of strategic emerging fields, laid out in advance, and consolidated the foundation of customers and high-quality projects. In particular, the growth rate of green financing balance is greater than that of corporate financing balance. By the end of 2021, the balance of on balance sheet and off balance sheet green finance financing of the group had increased by 19.98% compared with the end of the previous year, of which the green loan had increased by 42.11% compared with the end of the previous year.
Optimize the debt structure of the company, and actively control the asset return under pressure. Under the continuous promotion of the construction of “settlement bank”, the average daily growth of settlement deposits was 22.97% year-on-year, much higher than the year-on-year growth of deposits. At the same time, the construction of wealth management ecosystem also makes low-cost deposits precipitate. In 2021, the proportion of the company’s daily average balance of demand deposits increased by 1.94pct to 42.45%. In addition, the cost rate of time deposits also improved, and the cost rate of fixed deposits for public and retail decreased by 7bp and 9bp respectively.
In the second half of the year, retail AUM grew gratifying, and fortune bank made a first-class attack
By the end of 2021, the company’s retail AUM had reached 2.85 trillion yuan, including an increase of 160 billion yuan in the second half of the year (double the increase over the first half of the year). Among them, the average daily AUM of private banks reached 742.5 billion yuan, with a year-on-year growth rate further than that at the end of the first half of the year. With the steady growth of AUM, the company achieved a year-on-year increase of 13.17% in wealth bank revenue, including a year-on-year increase of 20.42% in wealth management revenue and 104% in fund consignment revenue.
The overall asset quality was stable, and the provision coverage reached a seven-year high
By the end of 21q4, the non-performing rate was 1.10%, down 2bp month on month. Under the influence of the early recognition standard of overdue 21q4 credit card loans, the proportion of concerned loans increased by 5bp month on month, and the proportion of overdue loans also increased by 4bp compared with the end of 21q2. However, overall, the asset quality is stable and improving, and the corporate non-performing rate continues to decline. In addition, the company’s provision coverage at the end of 21q4 reached 268.73%, the highest level since the end of 2014.
Investment suggestion: accelerate the promotion of green finance and maintain the “buy” rating
The company prospectively explores market opportunities and continues to empower the three golden business cards of “green bank, wealth bank and investment bank”. In particular, the development momentum of green bank is good. Not only the interest rate of new loans is higher than that of the company as a whole, but also the non-performing rate is only 0.49%. The company has obvious first mover advantages in grasping the opportunity of green finance. We are optimistic about the future performance growth of the company. It is expected that the net profit attributable to the parent company will increase by 17.15%, 13.77% and 13.09% year-on-year from 2022 to 2024. As of the closing on March 24, the company’s Pb (LF) was 0.69 times, maintaining one time of the target Pb in 2022, corresponding to the target price of 32.03 yuan, maintaining the “buy” rating.
Risk warning: insufficient credit demand, credit risk fluctuation, AUM growth is less than expected.
