\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Event: on April 15, the company released its 2021 annual report, with a revenue of 29.36 billion yuan, yoy + 18.4%; Net profit attributable to parent company: 9.26 billion yuan, yoy + 29.8%; The non-performing rate was 0.86%, the provision coverage rate was 568%, and the roe was 12.33%.
Revenue maintained a high growth, in which non interest income performed well and profit growth continued to improve at a high level. According to the split of the year-on-year growth rate of the company’s revenue in 2021, the net interest income remained stable, the growth rate of net handling fee income increased by 7.9pct compared with 21q3, the custody and investment bank consulting business was the core support, and other non interest income benefited from the improvement of investment income and valuation of trading financial assets, realizing a year-on-year growth rate of nearly 90%. The growth rate of net profit attributable to the parent company rose quarter by quarter, highlighting the high performance. From the perspective of profit contribution factor, scale expansion is a ballast, and the provision back feeding profit increased significantly. In a single quarter, the revenue of 21q4 increased steadily, and the net profit attributable to the parent increased by 42.7% year-on-year, with a month on month increase of + 8.2pct.
Under the layout of large retail, consumer loans and wealth management work together. In 2021, the company’s retail AUM increased by 10.9% year-on-year, and the sales of wealth management products increased well. Among them, the balance of fund consignment increased by 166% year-on-year, forming a considerable contribution to middle income and benefiting the precipitation of low-cost liabilities. Consumer loans, a variety of high-yield personal loans, increased by 23.1% year-on-year, leading the growth rate of personal loans by 3.9pct and improving the net interest margin.
The “two extensions” of small and micro finance have achieved initial results. In terms of customer extension, the company’s small and micro basic customers increased by + 8.9% year-on-year to 217000 in 2021; in terms of credit loan extension, the balance of small and micro loans increased by + 22.1% year-on-year, leading the growth rate of total loans and personal loans. The company’s “optimizing small and micro” strategy has made solid progress, which is expected to support long-term expansion and stabilize the net interest margin.
The net interest margin has stabilized and is expected to continue to improve. In 2021, the company’s net interest margin was 1.83%, lower than that of 21h1, mainly due to the decline in the yield of interest bearing assets. However, in a single quarter, the net interest margin of 21q4 narrowed by only 3bp, in which the yield on the asset side was + 7bp month on month, transmitting a signal of stabilization. In 2021, the loan growth rate continued to increase, and the annual growth rate led to the expansion of interest bearing assets by 1.6pct. Since 21h1, it has contributed to the core increment of metric manufacturing, infrastructure and personal consumption loans. The improvement of asset structure is expected to consolidate the stabilization trend of net interest margin.
The non-performing assets decreased and the provision coverage increased 98pct. In 2021, the non-performing ratio of the company decreased by 21bp compared with the beginning of the year, and decreased by 4bp quarter on quarter. The balance of non-performing loans also decreased, and the quality of assets was substantially consolidated; From the perspective of leading indicators, the attention rate and overdue rate continue the downward trend, and the stricter recognition of non-performing assets also shows that the asset quality is expected to continue to improve. The significant improvement of non-performing loans boosted the provision coverage to a new high and reserved restructuring space for subsequent back feeding profits.
Investment suggestion: high performance, optimized structure and excellent quality
The prosperity and low interest rate of retail assets have been significantly improved, and the quality of retail assets has been significantly improved. It is estimated that the EPS of 22-24 years will be 1.68 yuan, 2.15 yuan and 2.76 yuan respectively. The closing price on April 15, 2022 corresponds to 1.1 times of 22 years Pb, maintaining the “recommended” rating.
Risk warning: macroeconomic growth rate is down; Frequent epidemic risks; Credit risk exposure.
