\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 658 Postal Savings Bank Of China Co.Ltd(601658) )
Core view
The net profit attributable to the parent company maintained double-digit growth and showed a great style of growth. In 2021, the operating revenue reached 318.8 billion yuan, an increase of 11.4% year-on-year, with a growth rate of 1.2 percentage points higher than that in the first three quarters, mainly due to the contribution of other non interest income; The annual PPOP increased by 8.1% year-on-year; The annual net profit attributable to the parent company was 76.2 billion yuan, with a year-on-year increase of 18.6%. The annual net profit attributable to the parent company increased by 11.8% on average in two years, up 2.8 percentage points from the first three quarters, still showing the characteristics of a large growth bank. 2021 weighted roe11 9%, basically stable year-on-year.
Asset growth is slightly faster than the industry average. In 2021, the total assets increased by 10.9% year-on-year to 12.59 trillion yuan, slightly higher than that in the early stage and slightly higher than the overall level of the industry. Among them, deposits increased by 9.6% year-on-year to 11.35 trillion yuan, and loans increased by 12.9% year-on-year to 6.45 trillion yuan; At the end of the year, the core Tier-1 capital adequacy ratio was 9.92%, higher than the regulatory standard.
Net interest margin bottoms out. The annual average daily net interest margin of the company was 2.36%, a year-on-year decrease of 6bps, which was mainly caused by the slight decrease of loan yield and the slight increase of deposit cost. However, the company’s net interest margin has stabilized significantly since the interim report. Among them, the annual loan yield decreased by 7bps year-on-year, and the deposit interest payment rate increased by 4bps.
The upgrading of wealth management business promoted a significant increase in net fee income. In 2021, the net fee income increased by 33.4% year-on-year, mainly because the company accelerated the transformation and upgrading of wealth management system, made full efforts in consignment business, and promoted the rapid growth of intermediary business income.
Asset quality remains excellent. The estimated non-performing generation rate in 2021 is 0.29%, a year-on-year decrease of 17bps. The non-performing generation rate disclosed by the company is 0.60%, a year-on-year decrease of 19bps. The non-performing generation rate of the company is very low, and the margin is still improved. The provision coverage rate of the company at the end of the year reached 419%, which was basically the same level as that in previous quarters. In addition, the non-performing rate of the company at the end of the year was 0.82%, unchanged from the end of the third quarter; The attention rate was 0.47%, which was 1 BPS lower than that in the interim report; Non performing / overdue 92%, basically stable compared with the interim report.
Investment suggestion: we slightly adjusted the profit forecast according to the latest LPR adjustment and other factors. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 86.2/97.3/109.2 billion yuan, with a year-on-year growth rate of 13.2/12.9/12.2%; Diluted EPS is 0.88/1.00/1.13 yuan; The current share price corresponds to PE of 6.1/5.4/4.7x and Pb of 0.71/0.65/0.59x, maintaining the “buy” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
