\u3000\u3 China Vanke Co.Ltd(000002) 142 Bank Of Ningbo Co.Ltd(002142) )
Core view:
The event company released its annual report for 2021.
In 2021, the company achieved an operating revenue of 52.774 billion yuan, a year-on-year increase of 28.37%, and the net profit attributable to the parent company was 19.546 billion yuan, a year-on-year increase of 29.87%; Roe (weighted average) was 16.63%, with a year-on-year increase of 1.73 percentage points; Basic Eps3 13 yuan, a year-on-year increase of 28.81%. The company’s performance continued to grow steadily and high, which was mainly affected by the bright performance of a number of businesses.
The momentum of credit growth was strong, and the cost of deposits was improved. In 2021, the company’s net interest income was 32.697 billion yuan, a year-on-year increase of 17.37%, and the net interest margin was 2.21%, a year-on-year decrease of 0.09 percentage points. The growth rate of the company’s net assets is mainly driven by the expansion of the company’s interest scale, which is higher than that of the peers. By the end of 2021, the total assets of the company were 2015607 billion yuan, a year-on-year increase of 23.9%; The balance of loans was 862709 billion yuan, an increase of 25.45% year-on-year, of which corporate loans and retail loans increased by 25.57% and 27.32% year-on-year respectively. The growth momentum was strong, and the proportion in total loans increased by 0.05 and 0.57 percentage points respectively. Structural optimization helped stabilize and improve pricing; The growth rate of deposits on the liability side was stable and the cost decreased. By the end of 2021, the company’s deposit balance was 1052887 billion yuan, a year-on-year increase of 13.8%; The average cost rate of deposits was 1.83%, a year-on-year decrease of 3bp.
Non interest income increased by more than 50%, and the development trend of wealth management business was good. In 2021, the company’s non interest income was 20.077 billion yuan, a year-on-year increase of 51.5%, accounting for 38.04% of operating income. The income from intermediate business was 8.262 billion yuan, a year-on-year increase of 30.27%. Among them, the wealth management business achieved rapid development. In 2021, the company’s agency business revenue increased by 33.09% year-on-year; Retail AUM was 656.2 billion yuan, a year-on-year increase of 23%, and private bank AUM was 146.4 billion yuan, a year-on-year increase of 53%. Other non interest income increased by more than 70%, mainly benefiting from the improvement of investment business income. In 2021, the company’s investment income (including profit and loss from changes in fair value) increased by 57.75% year-on-year.
The asset quality is stable and improving, and the risk offset ability is enhanced. By the end of 2021, the company’s non-performing loan ratio was 0.77%, down 0.02 percentage points year-on-year, maintaining a low level; Concern loans accounted for 0.48%, a year-on-year decrease of 0.02 percentage points; The provision coverage rate was 525.52%, a year-on-year increase of 19.93 percentage points, a large increase in the fourth quarter, and the risk offset capacity was further enhanced.
The investment suggestion company is deeply engaged in the economically developed areas of the Yangtze River Delta, focusing on the expansion of large retail and light capital business, with excellent business quality and profitability ranking at the forefront of the industry. The growth momentum of asset side credit is strong, the contribution of personal loans to consumer credit is high, and the structure is excellent, which supports the net interest margin and keeps the industry better. The growth rate of deposits on the liability side is leading, and the cost advantage is enhanced. The company is committed to building a diversified profit center, consolidating and developing the moat, continuously enhancing its competitiveness, adding allotments and landing, supplementing core Tier-1 capital and helping business expansion. We are optimistic about the company’s future development prospects. In combination with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating, bvps23.5 from 2022 to 202448 / 27.23/31.72 yuan, corresponding to the current share price Pb 1.65x/1.42x/1.22x.
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
