\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 128 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) )
The event company released its annual report for 2021.
The performance maintained a double-digit high growth and was basically good. In 2021, the company achieved an operating revenue of 7.655 billion yuan, a year-on-year increase of 16.31%; The net profit attributable to the parent company was 2.188 billion yuan, a year-on-year increase of 21.34%; Roe (weighted average) reached 11.62%, with a year-on-year increase of 1.28 percentage points; The basic EPS was 0.8 yuan, a year-on-year increase of 21.21%. The company’s revenue and net profit maintained double-digit growth, which continued to expand compared with the first three quarters, basically facing the continuation of the good trend.
Nim turned upward and the credit structure continued to be optimized. In 2021, the company realized a net interest income of 6.691 billion yuan, a year-on-year increase of 12.15%, which continued to improve; The net interest margin was 3.06%, down 0.12 percentage points year-on-year, but stabilized and rebounded compared with the first three quarters. The growth rate of asset side credit is bright and the structure is optimized, which is conducive to the repair of volume and price. By the end of 2021, the total loan was 162797 billion yuan, a year-on-year increase of 23.59%; Among them, personal loans increased by 32.29%, accounting for 61.02% of the total loans, with a year-on-year increase of 4.01 percentage points. Personal business loans, mortgages, consumer loans and credit cards all performed well. At the same time, the proportion of loans below 1 million was further increased to 41.87%. The growth rate of deposits on the liability side was stable and the cost decreased. By the end of 2021, the company’s total deposit was 182732 billion yuan, a year-on-year increase of 15.07%; The average cost decreased by 27.2% year-on-year.
The middle income increased by more than 60%, and the wealth management business was fully launched. In 2021, the company’s non interest net income was 964 million yuan, a year-on-year increase of 56.59%. Among them, the intermediate business income was 238 million yuan, with a year-on-year increase of 60.99%, mainly benefiting from the high growth of agency income and the reduction of handling fees and commission expenses. In 2021, the company’s agency business revenue increased by 115.58% year-on-year, and the handling fees and commission expenses decreased by 11.16% year-on-year. The net worth transformation of corporate financial management has been completed and the wealth management business has been fully started. By the end of 2021, the total scale of the company’s financial products was 30.986 billion yuan, all of which were non breakeven and net worth financial products; The total assets of private bank customers were 17.755 billion yuan, with 2422 private bank customers, a year-on-year increase of 20.86%. Other non interest income maintained rapid growth. In 2021, the company’s other non interest income was 726 million yuan, a year-on-year increase of 55.21%. Among them, the investment income (including profit and loss from changes in fair value) was 652 million yuan, a year-on-year increase of 97.18%.
The asset quality was optimized, the ability of risk offset was enhanced, and the strength of issuing convertible bonds to supplement capital. By the end of 2021, the group’s non-performing loan ratio was 0.81%, a year-on-year decrease of 0.15 percentage points, of which the non-performing rate of rural banks was 0.94%, and the proportion of special loans was 0.89%, a year-on-year decrease of 0.28 percentage points; The group’s provision coverage rate was 531.82%, up 46.49 percentage points year-on-year, including 293.59% of village banks. The company plans to issue no more than 6 billion yuan of convertible bonds, which will help to supplement capital strength, consolidate the capital base for the sustainable development of various businesses, enhance the company’s core competitiveness and achieve the established strategic objectives.
The investment suggestion company adheres to the market positioning of supporting agriculture and supporting small businesses, and has obvious advantages in small and micro finance. The demand for credit business is broad, personal business loans are developing rapidly, and Nim is in the lead. Excellent asset quality, better provision coverage than peers, and strong risk offset ability. The company carries out small and micro businesses through the combination of IPC + credit factory, effectively controls non-performing risks and helps credit expansion. At the same time, the company expands its business space by means of remote branches, rural banks and shares in Zhenjiang rural commercial bank, and the space for future performance growth is expected. In combination with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating, bvps7.5 from 2022 to 202499 yuan / 8.86 yuan / 9.91 yuan, corresponding to the current share price of pb0.99 yuan 94X/0.85X/0.76X。
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
