\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 128 Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) )
Previously, the performance express has been disclosed, and the performance has achieved high growth. In 2021, the annual revenue was 7.66 billion yuan (+ 16.3%), and the net profit attributable to the parent company was 2.19 billion yuan (+ 21.2%). In the fourth quarter, the single quarter revenue was 2.02 billion yuan (+ 26.8%), and the net profit attributable to the parent company was 530 million yuan (+ 29.2%). In addition, the company has disclosed the performance express for the first quarter of 2022. The revenue in the first quarter increased by 19% year-on-year, and the net profit attributable to the parent increased by 23% year-on-year, with brilliant performance.
The net interest margin rose 5bps month on month, demonstrating the continuous strengthening of the competitiveness of the company’s small and micro enterprises. The net interest margin in 2021 was 3.08%, narrowed by 10bps year-on-year, but increased by 5bps month on month compared with the first three quarters. Since the second quarter of 2021, the company’s net interest margin has continued to rise slightly, and the increase of net interest margin in the fourth quarter was slightly higher than expected, indicating that the competitiveness of small and micro businesses has been significantly enhanced after the deepening of the company’s strategy of small and scattered businesses.
We deepened the expansion of small and scattered businesses, and the proportion of remote businesses continued to increase. In 2021, the company’s new loans reached 31.1 billion yuan, a year-on-year increase of 23.6%, of which 52% were invested in personal operating loans. At the end of the period, the proportion of personal operating loans in the total loans increased by 3.0% to 39.8% compared with the beginning of the year. Among the personal operating loans, the proportion of loans below 300000 (inclusive) was 28.0%, and the proportion of credit was 10.1%, an increase of 0.6 and 3.3 percentage points respectively over the beginning of the year. The four pilot areas of Inclusive Finance have achieved good development, and more than 5 billion yuan of small and micro loans have been issued in nine months. At the end of the period, the proportion of individual business loans and total loans outside Changshu was 11.5% and 31.9% respectively, down 4.9 and 5.9 percentage points respectively compared with the beginning of the year.
Structural deposits are converted into general time deposits, and the deposit cost is down. The annual deposit increased by 15.4%, indicating that the company has a strong ability to attract deposits. In 2021, the company reduced the high-cost structured deposits under the guidance of policies, and the annual deposit cost decreased 6bps to 2.27%. High cost structured deposits were converted into time deposits. At the end of the period, the proportion of the company’s time deposits was 63.2%, an increase of 5.1 percentage points over the beginning of the year.
The operating quality of non-performing loans is at a low level, with excellent personal non-performing assets. The non-performing rate at the end of the period was 0.81%, which was the same as that at the end of September, and the estimated non-performing rate was only 0.33%; The overdue rate was 0.90%, down 7bps from the end of June, and the asset quality was excellent. Among them, the non-performing rate of personal operating loans at the end of the period was 0.94%, a decrease of 2bps compared with the end of June, reflecting the company’s strict risk control in adhering to the strategy of becoming small and scattered. At the end of the period, the company’s provision coverage was 531.8%, an increase of 10 percentage points over the end of September, ranking in the forefront of the industry.
Investment advice: maintain the profit forecast and maintain the “buy” rating.
The competitiveness of the company’s small and micro enterprises continues to increase. With the continuous deepening of strategy, it is expected that the roe center is expected to rise. Maintain the forecast of net profit of RMB 2.66/3.20/3.75 billion from 2022 to 2024, with a corresponding increase of 21.7% / 20.4% / 17.1% and EPS of RMB 0.97/1.17/1.37. The dynamic PE corresponding to the current stock price is 7.4x/6.1x/5.2x, and the dynamic Pb is 0.91x/0.82x/0.73x, maintaining the “buy” rating.
Risk tip: the epidemic situation is repeated, the steady growth policy is less than expected, and the economic recovery is lower than expected.
