\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 528 Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) )
The performance grew steadily, in line with expectations. In 2021, the operating revenue reached 3.31 billion yuan, an increase of 10.0% year-on-year; Ppop22.0 was achieved throughout the year 200 million yuan, a year-on-year increase of 11.1%; The annual net profit attributable to the parent company was 1.27 billion yuan, with a year-on-year increase of 15.1%. The annual net profit attributable to the parent company increased by an average of 10.7% in two years, mainly benefiting from the improvement of asset quality and the growth of profit fed by provisions. 2021 weighted roe10 3%, down 0.1 percentage points year-on-year, mainly because the company completed listing last year and diluted roe.
The asset growth rate was slightly lower than the industry average, and the proportion of non local loans increased. In 2021, the total assets increased by 570 to 136.9 billion yuan year-on-year, slightly lower than the overall level of the industry. Among them, deposits increased by 10.6% year-on-year to RMB 10.4 billion, and loans increased by 11.0% year-on-year to RMB 85 billion; At the end of the year, the core tier 1 capital adequacy ratio was 15.41%, far higher than the regulatory standard. From a regional perspective, the proportion of loans in Keqiao area decreased slightly by 1.2 percentage points to 75.4% in 2021, while the proportion of loans in Yiwu area increased slightly by 0.3 percentage points to 8.0%, and the proportion of loans in Shaoxing except Keqiao increased slightly by 0.9 percentage points to 16.6%.
The net interest margin decreased year-on-year. The company’s annual average daily net interest margin was 2.34%, a year-on-year decrease of 17bps. Affected by this, the net interest income in 2021 increased by only 0.5% year-on-year. We expect that under the influence of LPR reduction and other factors, the company’s net interest margin will still have some narrowing pressure this year, but the narrowing range will be reduced.
The cost income ratio decreased slightly. In 2021, the business and management fee increased by 8.0% year-on-year, and the annual cost income decreased by 0.6 percentage points year-on-year to 32.2%.
Marginal improvement of asset quality. The estimated NPL generation rate in 2021 is 0.66%, a year-on-year decrease of 20bps, and the marginal improvement of asset quality. The provision coverage rate of the company at the end of the year reached 253%, which remained at the same level as the previous two quarters, an increase of 20 percentage points over the beginning of the year. In addition, the non-performing rate of the company at the end of the year was 1.25%, which was 1 bp lower than that at the end of the third quarter; The attention rate is 1.51%. The company’s attention rate fluctuates greatly, but the overall level is not high.
Investment suggestion: we slightly adjusted the profit forecast according to the latest information in the annual report. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 1.44/15.9/1.73 billion, with a year-on-year growth rate of 13.0/11.0/8.7%; Diluted EPS is 0.95/1.06/1.15 yuan; The current share price corresponds to PE of 9.9/8.9/8.2x and Pb of 0.96/0.88/0.81x, maintaining the “overweight” rating.
Risk tip: the weakening macroeconomic situation may have an adverse impact on the quality of bank assets.
