\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 926 Bank Of Hangzhou Co.Ltd(600926) )
Key investment points
Performance overview
Bank Of Hangzhou Co.Ltd(600926) 2021 annual report: net profit attributable to parent company + 29.8% year-on-year, growth rate + 3.6pc month on month; Revenue was + 18.4% year-on-year and -1.6pc month on month; ROE12. 3%, year-on-year + 1.2pc; ROA0. 72%, year-on-year + 7bp; The non-performing amount was – 0.8% month on month, the non-performing rate was 0.86%, the month on month ratio was – 5bp, the provision coverage rate was 568%, and the month on month ratio was + 8.3pc.
Core view
1. Profits continued to improve Bank Of Hangzhou Co.Ltd(600926) 2021a’s profit growth further increased by 3.6pc to 29.8% on the basis of the continuous growth in the first three quarters, ranking among the top listed companies with disclosed performance. Due to the accelerated expansion of scale, the support of non interest income and impairment was strengthened. ① Scale: the average daily scale of 21a interest bearing assets was + 18.5% year-on-year, and the growth rate was + 0.4pc month on month. ② Impairment: 21q4 single quarter asset impairment loss was – 23.4% year-on-year, with a growth rate of 49.9pc lower than 21q3. ③ Non interest income: non interest income of 21a increased by + 50.4% year on year, with a growth rate of + 2.5pc month on month, mainly due to the growth rate of + 7.9pc month on month in the middle income. It is speculated that under the strong wealth management demand in the region, the company’s wealth management strategy is gradually implemented and the consignment business begins to work.
2. The interest margin decreased slightly. 21a Bank Of Hangzhou Co.Ltd(600926) net interest margin (at the beginning and end of the period) was 1.64%, a slight decrease of 3bp compared with 21q3, and the cost ratio of attributable liabilities increased more. Specifically: ① on the asset side, the return on interest bearing assets of 21q4 increased from + 5bp to 3.78% month on month, mainly due to the increase in the proportion of high-yield retail loans, and the growth rate of 21q4 retail loans increased by + 7.4% month on month, 3pc faster than the total loans. ② On the liability side, the cost ratio of 21q4 interest payment liabilities increased from + 9bp to 2.44% month on month, which was mainly due to the decline in the proportion of deposits and the rise in the cost ratio of deposits. The growth rate of 21q4 deposits was + 3.8% month on month, 1pc slower than that of total liabilities, and the cost ratio of 21h2 deposits increased by 7bp to 2.24% compared with 21h1.
3. Solid asset quality. ① In terms of non-performing items, Bank Of Hangzhou Co.Ltd(600926) 21q4 non-performing amount decreased by 0.8% month on month, and the non-performing rate decreased from -5bp to 0.86% month on month. The non-performing items decreased continuously. In terms of forward-looking indicators, the concern rate of 21q4 was – 18bp to 0.38% month on month, and the overdue rate was – 8bp to 0.61% month on month. ② In terms of provision, Bank Of Hangzhou Co.Ltd(600926) provision coverage increased from + 8.3pc to 568% month on month, and the provision increased significantly, reaching the best level since listing. Looking forward to the future, with solid asset quality and declining actual risks, it is expected that Bank Of Hangzhou Co.Ltd(600926) asset quality will remain stable and improve, and solid provisions will continue to lay a foundation for performance release.
4. Optimization of ownership structure. According to the company’s announcement in March, after the equity transfer between major shareholders is completed, the proportion of state-owned assets in Hangzhou in the overall equity structure will increase. It is expected that the bank government cooperation is expected to be closer, which is conducive to Bank Of Hangzhou Co.Ltd(600926) further tap the potential business opportunities in high-quality areas and contribute to rapid development.
Profit forecast and valuation
It is estimated that the growth rate of net profit attributable to parent company in 22-24 years will be 25.8% / 20.5% / 20.6%, corresponding to BPS 13.8/15.5/17.5 yuan. Maintain the target price of 19.89 yuan, corresponding to 1.44x Pb in 22 years. The current price corresponds to 22-year Pb 1.11x, the current price space is 30%, and the buy rating.
Risk tip: macroeconomic stall, substantial exposure of adverse
