\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 009 Bank Of Nanjing Co.Ltd(601009) )
Core view:
The event company released the annual report of 2021 and the first quarterly report of 2022.
The performance exceeded expectations and the profitability continued to improve. In 2021 and 2022q1, the company’s operating revenue increased by 18.74% and 20.39% year-on-year, and the net profit attributable to the parent increased by 21.04% and 22.33% year-on-year; The annualized ROE (weighted average) was 14.85% and 17.64%, with a year-on-year increase of 0.53 and 1.08 percentage points. The company’s performance and profitability continued to be excellent, which was mainly affected by the rapid growth of deposits and loans and the continuous improvement of the contribution of non interest business income.
The net interest margin fell, the scale of deposits and loans maintained a high increase, and the company’s net interest income was 6.898 billion yuan in 2022q1, a year-on-year decrease of 0.9%, which was significantly lower than the growth rate of 14.39% in 2021. It is expected to be mainly affected by the decline of asset side yield and the pressure on interest margin. In 2022q1, the company’s net interest margin was 1.83%, a year-on-year decrease of 13bp. The growth momentum of asset side credit is strong, and the growth rate of corporate loans is bright. By the end of March 2022, the company’s loan balance was 873552 billion yuan, an increase of 10.53% over the beginning of the year, higher than the growth rate of the same period last year. Among them, corporate loans and retail loans increased by 14.34% and 1.7% respectively; The deposit on the liability side increased significantly and the cost advantage was strengthened. By the end of March 2022, the company’s deposit balance was 1212661 billion yuan, an increase of 13.15% over the beginning of the year.
Investment income driven non interest income growth of more than 60%, and the development trend of wealth management business is good. In 2021, the company’s non interest income was 5.387 billion yuan, a year-on-year increase of 66.15%, much higher than the growth rate in 2021 (28.32%), and its proportion in operating income further increased to 43.81%. The income from intermediate business was 1.988 billion yuan, a year-on-year increase of 11.2%, maintaining a steady growth. Among them, the development trend of wealth management business is good. In 2021, the agency and consulting business was 3.858 billion yuan, a year-on-year increase of 24.11%; By the end of March 2022, the retail AUM had reached 611776 million yuan, and the number of private drilling customers had exceeded 36000, including 10000 private banking customers, with an increase rate of more than 14%. Other non interest income continued to benefit from the improvement of investment business income. In 2021, the company’s other non interest income was 3.39 billion yuan, a year-on-year increase of 133.95%. Among them, investment income (including profit and loss from changes in fair value) increased by 186.84% year-on-year.
The asset quality is stable and improving, and the risk offset ability is enhanced. In the first quarter of 2022, the company continued to strengthen the disposal of non-performing assets, the main indicators of asset quality remain stable, and the risk offset ability is relatively sufficient. By the end of March 2022, the company’s non-performing loan ratio was 0.9%, down 0.01 percentage points from the end of 2021; Concern loans accounted for 1%, down 0.22 percentage points from the end of 2021; The provision coverage rate was 398.41%, an increase of 1.07 percentage points over the end of 2021. The non-performing risk of real estate is controllable, and the non-performing rate is as low as 0.08% in 2021.
Based on the economically developed areas in the Yangtze River Delta, the investment suggestion company has obvious regional advantages and excellent equity structure. It has deeply promoted the two strategies of large retail and trading bank, and created a comprehensive business model of “commercial bank + investment bank + trading bank + private bank”, with remarkable business results and steady improvement of profitability. Rapid expansion of deposits and loans and expansion of on balance sheet business space; The contribution of non interest income increased, the performance of intermediary business was stable, and the development trend of wealth management was good. At present, the company has released the development plan of branches, and plans to exceed 300 outlets by the end of 2023. Considering the strong financing demand of Jiangsu Province, the company’s future performance growth space can be expected. Combined with the company’s fundamentals and stock price elasticity, we maintain the “recommended” rating, bvps12.5 from 2022 to 202433 / 14.06 / 16.14 yuan, corresponding to the current share price of pb0 96X/0.85X/0.74X。
The risk indicates that the macroeconomic growth is less than expected, resulting in the risk of deterioration of asset quality.
