\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 818 China Everbright Bank Company Limited Co.Ltd(601818) )
Highlights of the annual report: 1. The growth rate of revenue remained stable and achieved a growth of more than 7 points. The growth rate of profit before provision slowed to 5.2% in the case of increased operating expenses in the fourth quarter. Under the stable asset quality, the provision released profits, and the net profit maintained a high growth rate of nearly 15%. 2. New retail loans accounted for nearly 50% in the whole year, and new retail loans accounted for 49.5% in the whole year. Mortgage and operating consumer loans increased rapidly. New mortgages accounted for 24.5%, and business and consumer loans increased to 24.4%. 3. Net non interest income was + 27.7% year-on-year, driven by net other non interest income. At the same time, the growth of middle income supported by middle income wealth service income is not weak. The net handling fee increased by 11.9% year-on-year, of which the income from wealth services continued to maintain a good growth, with a year-on-year increase of 1.46 billion, a year-on-year increase of 57.9%, and the proportion increased to 13.2%, which has become the second business with medium income. Net other non interest income increased by 85.6% year-on-year, mainly driven by the rise in investment income. 4. Asset quality continued to improve, and non-performing assets decreased. In the fourth quarter, the company’s non-performing rate fell 9bp to 1.25% month on month, and the stock of risky assets continued to dissolve, the best level since 2015. The coverage of provision for non-performing assets increased by 1.3 percentage points to 187.0% month on month.
Insufficient annual report: 1. The quarterly annualized interest rate spread decreased 3bp to 1.96% month on month. Mainly due to the drag on the asset side, the return on assets decreased by 4bp month on month, and the cost on the liability side remained stable at 2.31% month on month. The decline of asset side income is expected to be a structural factor. The expansion of Q4 asset scale is dominated by bond investment and inter-bank asset growth, which has dragged down the decline of asset yield to a certain extent. 2. The cost income ratio increased year-on-year. The cumulative management fee increased by 13.69% year-on-year, which was significantly wider than the 8.76% year-on-year in the third quarter. 3. The core tier 1 capital adequacy ratio decreased month on month. In 2021, the core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio and capital adequacy ratio were 8.91%, 11.41% and 13.37% respectively, with a chain comparison of – 8bp, – 15bp and – 25bp.
Investment suggestion: 2022 and 2023e Pb 0.41x/0.38x; PE 3.89x/3.58x (pb0.57x/0.51x; PE 4.97x / 4.49x for joint-stock banks), China Everbright Bank Company Limited Co.Ltd(601818) asset structure adjustment returns to traditional deposit and loan business, and continues to consolidate the advantages of intermediary business under the promotion of the strategy of “building a first-class wealth management bank”. The safety margin of the company’s valuation is high and the management is improved. It is recommended to pay attention to it.
Adjustment of profit forecast: according to the annual report of 2021, we adjusted the profit forecast. It is estimated that the operating revenue in 2022 / 2023 / 2024 will be 166893 / 1824.0 / 198824 billion yuan, with a growth rate of 9.9% / 9.3% / 9.0%; The net profit attributable to the parent company was 47.745/51.585/55.314 billion yuan, with a growth rate of 10.0% / 8.4% / 6.7%. Adjustment of core assumptions: 1 Considering that the policy continues to guide financial institutions to transfer profits to entities and the net interest margin of the industry is under pressure, the corporate loan yield is adjusted to 5.15% / 5.15% / 5.15%; The bond investment yield is 3.00% / 3.00% / 3.00%. 2. The interest payment rate of the company’s deposits is stable and good, and the adjusted interest payment rate of deposits is 2.20% / 2.20% / 2.20%.
Risk tip: the economic downturn exceeded expectations and the company’s operation was less than expected.
