\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 818 China Everbright Bank Company Limited Co.Ltd(601818) )
Data overview
2021a China Everbright Bank Company Limited Co.Ltd(601818) net profit attributable to parent company + 14.7% year on year; Revenue + 7.1% year on year; ROE 10.6%； ROA0. 77%, year-on-year + 2bp. The non-performing rate was 1.25%, with a chain comparison of -9bp, and the provision coverage rate was 187%, with a chain comparison of + 1pc.
Core view
1. The profit keeps increasing rapidly. In 2021, China Everbright Bank Company Limited Co.Ltd(601818) net profit attributable to parent company was + 15% year-on-year, maintaining a rapid growth, with a growth rate of -3.8pc month on month. The decline in profit growth was mainly due to interest rate spread and other non interest drag. Specifically: (1) 21q4 single quarter interest margin (at the beginning and end of the period) was – 2bp month on month, and the return on attributable assets decreased. ① On the asset side, the return on assets in a single quarter (at the beginning and end of the period) rose -3bp to 4.06% month on month, and the proportion of loans decreased. 21q4 loans increased by + 0.6% month on month, 3.2pc slower than total assets. ② On the liability side, the single quarter debt cost ratio (at the beginning and end of the period) was flat at 2.32% month on month, due to the decline of active debt cost. The interest rates of 21h2 bonds and interbank liabilities increased to 2.90% and 2.40% compared with 21h1 – 3bp and – 7bp. Looking forward to the future, affected by the LPR interest rate cut, it is expected that the interest rate spread will still face narrowing pressure. (2) Other non interest rates were + 78% year-on-year, with a growth rate of – 45pc month on month, which was attributed to the fading of the low base effect. Looking forward to the future, the steady improvement of asset quality is expected to support the rapid growth of profits.
2. Promotion of wealth strategy China Everbright Bank Company Limited Co.Ltd(601818) wealth management strategy has achieved remarkable results. (1) In terms of scale, 21aaum increased by + 11% year-on-year, compared with 21h1 + 3pc; (2) On the revenue side, 21a wealth management revenue was 7.9 billion, a year-on-year increase of + 23%, a growth rate of + 8pc compared with 21h1, supporting the growth rate of medium income, which increased by 1.7pc to 11.9% compared with the first three quarters.
3. Improve the asset quality China Everbright Bank Company Limited Co.Ltd(601818) asset quality indicators are improving in an all-round way. (1) In terms of stock indicators, the non-performing rate decreased both (the non-performing rate was – 9bp and the balance was – 5.8% month on month), and the overdue rate and attention rate decreased by 6BP and 4bp respectively compared with 21h1. The provision has increased steadily, and the provision coverage rate has increased from + 1pc to 187% month on month; (2) In terms of dynamic indicators, the generation rate of TTM defects decreased by 15bp to 1.63% compared with 21h1. Looking ahead, asset quality is expected to remain stable.
Profit forecast and valuation
It is estimated that the net profit attributable to the parent company from 2022 to 2024 will increase by 9.22% / 9.31% / 9.42% year-on-year, corresponding to bps7.5% 58 / 8.23 / 8.94 yuan shares. The current price corresponds to 0.43/0.39/0.36 times of Pb valuation. Maintain the target price of 5.60 yuan / share, corresponding to 0.74x Pb in 22 years, the current price corresponds to 0.43x Pb in 22 years, and the current price space is 74%.
Risk tip: macroeconomic stall, substantial exposure of adverse
